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ISLAMABAD: Two taxi companies were closed down during a raid on their offices on Thursday and the offices of two others were found closed after show cause notices were issued to them in response to complaints lodges against them by the local Taxi Driver Welfare Association (TDWA).
According to officials of the local administration, a team that included assistant commissioner Saddar and Secretary Islamabad Transport Authority (ITA), raided the offices of two cab companies in the G-8 and F-11 markazes and sealed them as they were running illegally. The team found the offices of two other cab companies in the I-8 markaz and Bahria Town closed.
“These cab companies were operating in the city without approval or a permit,” an official said.
A TDWA office bearer had approached the deputy commissioner Islamabad and Secretary ITA earlier and lodged a complaint regarding the large number of unregistered vehicles being used as taxis for some time in the capital and that such practices affected the business of registered taxi drivers.
There are 22,000 registered taxis in the capital, the owners and drivers of which pay taxes in five different categories to the government including for fitness, conversion tax, permit and tokens, the complainant had said.
However, some companies are using unregistered vehicles as taxis and are providing pick and drop services in the city, the complainant had said, and that such practices cause losses to the exchequer as they are not paying the taxes payable on the commercial use of vehicles.
Therefore, notices were issued to Careem Networks (Pvt) Ltd, Derbi Cab, Crown Cab and Citi Cab.
“It has come to the notice of the undersigned that you operate an illegal cab service in Islamabad. You are hereby directed to explain your position within three days from receipt of this communication. Otherwise, strict legal action shall be taken against you,” the notices read.
The owners and managers of these companies did not reply in the stipulated time, the officials said, and that a raid was then conducted during which the offices of two companies were sealed and the offices of the other two were found to have been already closed.
When asked, the TWDA president told Dawn that some of the rent-a-car businesses were illegal and that people just establish their own cab companies. He said these companies use private cars in their businesses and provide services after a phone call is made.
These four companies had 1,300 vehicles providing cab services in the city, he added.
Published in Dawn, December 2nd, 2016
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Comments (36) Closed
Dec 02, 2016 05:27pm
Funny how the government doesn't shut down other pick and drop services like the mini buses used for school children, private office fleets etc.
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Dec 02, 2016 08:31pm
Excellent decision. When public infrastructure is used, taxes have to be paid. Whether those taxes are higher or lower, they have to be paid and unregistered cabs can not operate without permit. You cannot justify a wrong just because other such services are not taxed. They should be taxed too.
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Dec 02, 2016 10:21pm
Careem? NO, Please!
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Dec 02, 2016 11:31pm
@Shah I fail to understand how these are classified as cab companies when the vehicles aren't owned by them, and the drivers aren't their employees. Seems to be a last-ditch effort by the taxi mafia to resist the onslaught of technology. Can't wait to see how they react to driverless cars, and other such innovations.
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Dec 04, 2016 03:23pm
The agility & alertness of the administration to take action is matchless.One wonders where does it fizzle out when they take on proscribed organizations?
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Dec 04, 2016 03:25pm
I am not sure what was the urgency, but what i don't understand is that Careem, Uber, White Cab, Radio Cab, etc. are a more formal version of hired point-to-point transportation. The Government could easily improve its tax collections from these companies but then the regular taxi operators will face dwindling business (frictional unemployment), but thats what is suppose to happen in any economy.
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Dec 04, 2016 03:38pm
This is not about the legality. As rightly mentioned in the 3rd para, "such practices affected the business of registered taxi drivers". Now, those who live in Islamabad will agree that the so called registered taxi drivers have cars from the 1980s that go phut on the way. Not only they cause inconvenience to commuters but also are a threat to the environment. I wonder how they even get registered with their squeaking cars. Apart from the health hazards they present, they tend to charge way too much, to their heart's content. It's such a menace that law only acts when the palms are greased.
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Dec 04, 2016 04:05pm
these so called registered taxi drivers are charging too much money and blackmail passengers into paying more. Companies like careem has stopped that practice thats why Rangeeli taxis are protesting.
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Dec 04, 2016 04:08pm
This is madness. So the transport and taxi mafia wins again. It's a night mare to travel from point a to point b in Islamabad and Rawalpindi if you dont have a car. These vans and taxi guys are looting us with pathetic services.
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Dec 04, 2016 04:34pm
Its ridiculous. Surely the local taxis conspired to shut good services being provided to citizens. Now they can continue to operate their ramshackle vehicles to fleece people even more. So sad indeed.
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Dec 04, 2016 05:19pm
I believe its easier to tax companies like Careem than it is to tax individuals. Secondly I dont believe government is going after untaxes taxies as these guys hardly make profit of a few hundred ruppees a day. They are basically poor or lower middle class people. How about taxing the rich rather then the ones who cant already afford to send their kids to schools. You already have lists of people who to tax through all the leaks
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Dec 04, 2016 05:24pm
The mafia always wins and public suffers. Any modern initiative in interest of public doesn't get welcome in this land of pure.
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Dec 04, 2016 05:28pm
What is the purpose of 'registering' and 'regulating' taxi services? Ideally, something is regulated (one step of which is registeration) to safeguards the interests of the people; not that of the buisness. Therefore if people find that they prefer non taxi services more than the regular taxis, then shutting down these services is a disservice to the people.
Two, a regulated service means there are certain guarantees and protections available to the consumers. What are such guarantees and protections available to the public w.r.t taxi services?
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Dec 04, 2016 05:34pm
This government has no sense of priority. Things which are functioning fine are being poked into and disrupted and things that need to be fixed urgently; they are completely clueless about their even existence, let alone doing anything to solve them.
You want to regulate, then regulate your expenses and make audit reports available so that we, the people, know where you are wasting the money we give you.
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Dec 04, 2016 05:51pm
Bureaucracy kills innovation almost everywhere in the world, and Pakistan is proudly in the leading position!
If it was just about taxes, the govt. should have given an option to the companies to register and run, like Uber is being operated here in the UK.
Please regulate the market but don't stifle it.
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Dec 04, 2016 05:49pm
Taxis are afraid to loose their businesses and asking fat to high price. Because of career and uber we have much more reasonable prices.
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Dec 04, 2016 06:42pm
Transport Mafia strikes again!
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Dec 04, 2016 06:50pm
Do the ordinary Taxi drivers really pay taxes? It will be much easier to bring the companies like Careem Networks (Pvt) Ltd, Derbi Cab, Crown Cab and Citi Cab and the vehicle drivers they use under a prescribed tax band on their systematic office procedures.
This is the classic example of discouraging modern and new businesses in Pakistan where Civil Services officers have corrupt and defective brains and are incompatible with new trends
Take an example of Uber business model in the West and copy it if you can't build your own. But instead as a nation, Pakistan is deliberately pulled 70 or 80 yrs behind with a backward produce of Civil Services such as Local Administration, Assistant Commissioner and Secretary Islamabad Transport Authority.
Revamp Pakistan Civil Services.
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Dec 04, 2016 07:19pm
Careem is a multinational company providing great relief, ease and convenience to people of Pakistan. with very cheap fares which are almost equivalent to those of rickshaws. Government doesn't do anything against rich local industrialists and businessmen not paying taxes but has issues with Careem. May be the corrupt element wanted a kickback from Careem and its likes which it didn't get.
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Dec 04, 2016 09:03pm
For progress and advancement of Pakistan and improved living standards of its people, corruption has to be eliminated from society. Many sectors of society are controlled and run by corrupt officials, who have been earning extra income with bribe and kickbacks for years without getting caught. While other countries are concentrating on industrial developments, high technology products and electrical cars, a large number of people are busy chanting political slogans for political dynasties. What a waste of time and talents. Time to take strict action against greedy officials and politicians who are systematically destroying the country to accumulate illegal wealth. Lets hope some one is powerful enough in the country to get rid of such individuals.
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Dec 04, 2016 09:05pm
Govt is active in shutting down the cab service which is providing relief to consumers when traffic department had failed to install fare meters in taxis and rickshaws. Police is unable to check their fitness certificates. Is there any law which these taxi and rikshaw driver follow?
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Dec 04, 2016 09:39pm
The power of Mafia and vested interests of our Govt
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Dec 04, 2016 09:55pm
What about Lahore?
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Dec 04, 2016 10:06pm
All taxis in the city are eye-sores in the name of service. Non has anything worth the name. You have to enter a dilapidated junk named Taxi and must get your dress sent to dryclean for be presentable again. Besides, it is almost always that if you have not settled the fare, you have to pay through your nose for horrible nightmare of service. Careem was a good respite that is now being snatched away.
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Dec 04, 2016 11:45pm
@edwardian You make sense by pointing out corrupt practices. I think, unless corrupt officials are punished for their corruption, nothing will change and country would be sliding back in progress and poverty. That's what the enemies of Pakistan want, few rich families and majority struggling to make a descent living. What else is new?
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Dec 05, 2016 05:49am
How and why people in Pakistan take things for granted!
Bringing on roads of Islamabad; the Capital City and operational theater of the all powerful Federal Government; without proper legal authorization is indeed a daring job!
Now what? Let bygone be bygone and forget all about it!
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Dec 05, 2016 09:30am
This is ridiculous decision and anti people. Can the administration tell us how much these so called Taxi Driver Association (Mafia) deposit taxes to government treasury? Also how their old vehicles got fitness certificate? Most of their drivers are illiterate with no knowledge of traffic symbols get their driving licenses issued?
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Dec 05, 2016 10:11am
Dear deputy commissioner do you know how many antique cars are being used as taxis illegally?
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Dec 05, 2016 10:25am
Fine.. let the TRADITINAL taxis be on the roads.. but is it also not govt's DUTY to ensure they use proper meters and proper receipt is issued and they charge as per their car capacity, condition and fuel they are on!! govt seems to be doing half cooking ONLY. Plight of taxi drivers is heard but what about plight of PUBLIC???????
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Dec 05, 2016 10:59am
So finally corrupt mafia found a way to stop Careem.
GOOD Job Mafia keep it up.
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Dec 05, 2016 11:31am
Move your business to Peshawar- KP.
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Dec 05, 2016 12:17pm
a totally biased decision against a renowned cab service which is effectively running in Karachi. The Islamabad traffic police who call themselves a modular agency to regulate traffic has failed to nab large number of illegally running cab services in the city. i suggest that the traffic police of the capital should also be taken to task. Moreover all cab service operators should be given a definite time line to make and renew their registrations with the department. these steps could mitigate the discriminatory actions taken against a particular operator.
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Dec 05, 2016 05:17pm
Powerful Taxi Mafia !!!!!
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Dec 05, 2016 05:18pm
A good people friendly Government would act quite in the opposite manner to this. It would try to find ways to legalize something that has been received so well by the public in general and has made a positive contribution to their lives.
This in itself shows how the corrupt machinery uses the shiled of LAW to protect their own petty interests. No further to say on this !!!
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Dec 05, 2016 05:40pm
Transport mafia finally won !!! Wakeup admistration wakeup .
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Dec 05, 2016 07:30pm
Taxi drivers facing some sophisticated competition. When I can pay only 10% more rent, travel in comfortable AC vehicle as compared to old khatara Suzuki FX..why would I go for old crap?
Taxis are private businesses, not govt run enterprise, why should more innovative and newer solutions be penalised for lethargic business practices of conventional taxis?
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