KUALA LUMPUR, Aug 19 — A taxi group has suggested that approved permits (AP) for importing vehicles and duty exemptions be given to taxi permit holders to reduce the cost of buying cars.

Malaysia Taxi Drivers’ Coalition spokesman Norfaiza Abdul Ghani urged the Land Public Transport Commission (SPAD) to consider the proposal for its taxi industry reforms that will already remove restrictions on what cars may be used as cabs.

"This can reduce operation costs by up to 40 per cent because cheaper vehicles will translate into cheaper bank loans,” he was quoted saying by English language daily New Straits Times.

"Cheaper vehicle prices also means that we can purchase better cars. For example, a Toyota Vellfire, which normally costs more than RM200,000, can be purchased for between RM60,000 and RM70,000 with APs and excise duty exemption.”

He said taxi drivers earned an average of RM150 a day, with many having to pay monthly instalments as high as RM1,500 for budget taxis and RM2,700 for executive taxis.

Norfaiza added that a proposal will be submitted to SPAD, the International Trade and Industry Ministry, and the Finance Ministry this month.

On Tuesday, SPAD announced cash grants up to RM5,000 may be given to taxi drivers burdened by the lease system to buy their own vehicles, as part of its 11-point initiative recently approved by the Cabinet to transform the traditional taxi industry.

SPAD chairman Tan Sri Syed Hamid Albar had also said that Putrajaya has allocated RM150 million for applicants.

Dubbed the Taxi Industry Transformation Programme, the initiatives are set to take effect starting September 1, and was initiated as the conventional taxi industry face stiff competition against ride-sharing services like Uber and Grab.

The programme also include regulating e-hailing as part of the Land Public Transport Act, introducing KPIs for taxi operators and a more stringent pre-screening process for drivers.