THE largest taxi operator here, ComfortDelGro, will pass on all its savings from its road tax rebates to its drivers from March.
Cabbies leasing its fleet of 14,000 taxis will each get $51 a month for six months, or a total of $306. It is up to these hirers to share the rebate with their relief drivers.
Comfort expects its road tax savings ? unveiled for all six taxi operators in the Budget last week as a cushion against tough times ? to come to $4.6 million.
Taxi operators are eligible for a 30 per cent rebate on road tax for a year; the diesel tax on cabs that remain unhired for a one-year period from March will be pro-rated.
In all, the tax relief package will cost the Government $13 million.
Although the rebates will be given out to the operators over a 12-month period from July, Comfort will pass its savings to its drivers four months earlier.
Its chief executive for taxis, Mr Yang Ban Seng, said: "We have decided to do it earlier and over a shorter period of time to help our drivers tide over this difficult period."
Prime Taxis, the smallest operator, has also started passing on the savings to its drivers for the same reason.
Its cabbies are getting $25 a month for a year.
Three other operators said they will pass on the savings to their drivers from July.
Smart Automobile will put $40 a month into its drivers' Medisave accounts; Premier Taxis and Trans-Cab said they will give out cash rebates.
Only SMRT, the second-largest operator with 3,000 taxis, has not decided how it will pass on to its drivers its road tax savings of more than $900,000.
Overall, cabbies have picked up fewer passengers, now that commuters are more careful about spending.
Cabby G.K. Singam, who has been plying the roads for more than 25 years, said business has been "fairly good" during this festive period, but he is bracing himself for slim pickings after the 15 days of Chinese New Year.
The cash that his company Comfort is giving out will "definitely help a lot", he said.
"Luckily, Comfort is not waiting till July to give us the money, because we all need the money now," he added.
mariaa@sph.com.sg
This article was first published in The Straits Times on Jan 30, 2009.
