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New taxi reform will lead to lower wages



The Government’s new taxi reform will also lead to more tax breaks according to a report from the Swedish Transport Economics Institute (TØI).

TØI has, on behalf of several taxi companies in Oslo, investigated various taxi regulations, including the governments’. According to TØI, the government’s solution came out as the worst alternative of five said Klassekampen newspaper.

On July the 1st next year, the taxi market in the cities will be liberalised, which means that local politicians cannot limit the number of taxis according to need and the obligation to belong to a taxi center discontinues. Taxi services like Uber are likely to meet the new requirements and be allowed the newspaper wrote.

On three out of five criteria, the cab reform is being swamped and will lead to a “very challenging situation” in terms of pay and working conditions, as well as the ability of government to control taxes and charges, and customers’ experience of street taxi services.

There will be more drivers and self-employed people arriving with the changes.

‘’Wages and working conditions are basically bad and will go from bad to worse’’ said researcher, Jørgen Aarhaug.

© NTB Scanpix / #Norway Today