MPs were back after their summer holidays and debated the taxi drivers’ strike while outside parliament, around 500 drivers has gathered in protest against the new Uber law which they claim legalises unfair competition.
Portugal’s taxi drivers have been holding protests since last November, mainly in Lisbon, Faro and Porto, against the new law that comes into effect on November 1st and which they want to see amended to their advantage.
Uber, Taxify, Cabify and Chauffeur Privé offer unfair competition, claim the drivers but Prime Minister António Costa was having none of it, taking a hard line approach in support of the new law that has taken an age to get as far as it has done.
Costa refused to reopen any debate on the new legislation regulating the new breed of electronic transport platforms, the target of taxi drivers' protests, and highlighted many of the benefits taxi drivers enjoy.
The PM said that the Government has worked for two years with the taxi drivers’ representatives during 19 meetings of a special working group under the Ministry of the Environment.
The Left Bloc leader, Catarina Martins admitted that the, "modernisation of the taxi sector" is necessary, but regardless of that, there now is, "unfair competition that calls into question the public service obligations of the transport sector.”
Martins wants amendment to correct what she termed as ‘mistakes’ in the legislation.
António Costa pointed out that, under the new Uber law, individual transport drivers must have a contract of employment, there can be no escape from tax, the company must be licensed and that a clear differentiation has been established between taxis and the vehicles used by the new breed of companies.
The prime minister listed a "set of exclusive rights" that taxis enjoy: "they are entitled to a reduction of the tax on vehicles,(they get a 70% exemption from ISV) they are entitled to a reduction in road tax (owners of taxis are exempt from IUC), they are entitled to deduct VAT from repair costs, they are entitled to a reduction of VAT on diesel, they have specific support for the renewal of their vehicles, they are entitled to use taxi ranks and they are entitled to use bus routes.”
Taxi drivers also earn money from the advertising on their vehicles, Uber drivers are not allowed to carry advertising.
A contribution to regulation and supervision will be made by Uber drivers of up to 25% of their billing. Taxi drivers do not pay this charge but their fares are regulated by the General Directorate of Economic Activities and are more expensive that fares on the new sector.
The strike continues.
