Hanoi Taxi Association considers copycat Grab model
  • | | August 10, 2019 06:30 AM
Hanoi Taxi Association has proposed changing from the traditional taxi into app-based taxi business model.


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General Secretary of Hanoi Taxi Association Ho Quoc Phi has sent the official document to the General Department of Taxation, Hanoi People's Committee, the Hanoi Department of Taxation, the Department of Planning and Investment, Department of Transport to ask for a business model change and how to pay taxes.

After three years of operations, app-based taxi firms such as Grab and Uber were recognised as contract transportation business in the draft decree on and transportation business conditions by cars. According to the association, the app-based taxi firms enjoy a lot of incentives, especially related to tax. They can also travel on some streets that ban traditional taxis during rush hours.

"Due to such differences, Hanoi Taxi Association proposes to Hanoi People's Committee, the General Department of Taxation, Hanoi Department of Taxation, Department of Planning and Investment, Department of Transport to let us change our business model into the electronic contract-based transporation business model," the association wrote.

The association then asked state agencies to guide them on how to pay taxes. They will terminate the current contracts with all drivers if required so that they can start another contract. The association wanted clarification whether their drivers would have to register as an independent business unit or could they only have to sign contracts to rent vehicles from the taxi firms.

The association also sent the document to the Ministry of Labour, Invalids and Social Affairs to ask for opinions and guidance on administrative procedures.

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