Illegal Taxi Operators Under Rentals Fire

Illegal operators are causing a stir in the rental car industry.

The concern was raised by Fiji Rental Car Association assistant treasurer Shailt Kumar at its annual general meeting.

“Fiji Revenue and Customs Service are also concerned because of the taxation of these illegal operators

“We are abiding by the rules, we are paying taxes so it is a disadvantage to us who spend a lot of money in getting all these things done to operate legally while these illegal operators just come to steal our business at a cheaper rate,” he said.

Illegal operators

Mr Kumar said illegal operators thrived in Fiji because of the absence of clear guidelines in place to govern operators.

He said: “Imagine if you are charging $90 for a car rental service because of taxes and all that, then somebody who has not been in the industry offers the same service but charges $70.

“The customer will choose the cheaper rate.

Disadvantages

“There are a lot of disadvantages to that because what happens when there is a road fatality?

“How will the private vehicle cover insurance for passengers when the driver is operating illegally?”he said.

Mr Kumar said the Land Transport Authority (LTA) had stepped in to stop the transfer of compensation funds to private vehicles.

Reviewing legislation

“In the past, people can just go in and submit a written copy stating that details of who was involved in the accident.

“Funds would be released to private vehicle holders.

“Now LTA will only release the funds to holders of rental vehicles,” he said.

Mr Kumar said the association has been in consultation with a solicitor to review its constitution act to be more transparent and to the point for its members.

He said the constitution act which has been governing the association for a couple of years. has some ambiguity in the structure of the wording.

The association currently has 70 members.

Feedback: laiseana.nasiga@fijisun.com.fj