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Taxis at Velana International Airport. (Atoll Times File Photo)

Bill proposes licence suspension for overcharging public transport operators

Under the proposed legislation, the fares of public transport services must comply with standards established by the Ministry of Transport.

27 November 2025

Parliament on Thursday introduced a bill that would give the Ministry of Transport the authority to withhold or revoke the licences of public transport operators, including taxis, if they charge fares higher than those set by the ministry.

The Road Traffic Bill was submitted by the Government.

Under the proposed legislation, the fares of public transport services must comply with standards established by the Ministry of Transport. To regulate pricing, the bill requires the ministry to set fixed rates or a pricing formula for different categories of services.

A service licence may be suspended or revoked if an operator violates the pricing standards. The bill states that operators may be given a reasonable period to rectify violations after notification. However, the ministry may take immediate action, including suspension or revocation, depending on the seriousness of the breach.

Taxi fares are already regulated, though drivers have repeatedly raised concerns about low price caps. Members of the public continue to report cases of operators charging above the regulated rate and difficulties in securing taxis.

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