The Ministry of Infrastructure and Transport has imposed a moratorium on the issuance of new taxi driving licences from June to September this year. During this period, the ministry will carry out a study to assess the balance between supply and demand of taxis in urban areas, particularly Thimphu. The study will also determine the number of taxis required based on passenger demand.
A notification from the Ministry of Infrastructure and Transport issued on June 6 states that there has been a rapid increase in the number of taxis in urban areas, particularly in Thimphu.
Currently, there are 31,500 taxi licence holders across the country.
Thimphu has the highest with over 21,000 followed by Phuentshogling, Gelephu, Samdrup Jongkhar, and Monggar.
In the past five years, over 10,000 taxi licences were issued with the highest recorded in 2022, at nearly 3,500.
According to the notification, there is oversupply of taxis, especially in urban areas like Thimphu. So, many taxis travel without passengers, leading to traffic jams, fuel wastage, and pollution.
Moreover, the ministry stated that the lack of enough taxi stands and parking spaces is another problem. Drivers are forced to keep moving while waiting for passengers.
The ministry added that these challenges have not only affected driver earnings but also highlighted the need for better regulations, infrastructure upgrades, and technology integration to improve overall service efficiency.
During the three-month moratorium, besides examining the demand and supply of taxis, the ministry will also look into how the taxis are managed and whether the profession remains financially viable for drivers.
The study plans to engage the public and relevant stakeholders to ensure that the findings reflect on-the-ground realities and local conditions.
Devika Pradhan
Edited by Tshering Zam
