Taxi industry pays $15 million to Toronto; Uber pays nothing

 

sam

TTA spokesperson Sam Moini speaks to Toronto's Budget Committee Janaury 12, 2016.

January 12, 2016 ( Toronto)—The Toronto Taxi Alliance (TTA) today reminds Toronto’s Budget Committee of the legal taxi industry’s contribution to the City’s bottom line.

Sam Moini, spokesperson for the TTA, presented Committee members with numbers based upon the City’s own estimates of taxi industry activity. [1]

“Every member of the taxi industry pays multiple fees and charges every year, contributing almost $15 million in total to Toronto’s annual budget,” said Moini, who points out that UberX drivers contribute absolutely nothing to Toronto’s bottom line while profiting from the use of Toronto’s infrastructure.

“$15 million pays for a lot of important services. As a comparison, TTC board-approved improvements which are currently unfunded total $16.7 million.[2]

“We hope that in the months ahead, as Councillors debate the folly of allowing an unlicensed, unregulated foreign company to exploit the City’s infrastructure while contributing absolutely nothing to it, you will give some thought to the millions of dollars the legal taxi industry contributes to Toronto.”

Moini notes that until 2014, legal taxi industry members believed at least some of their money went to pay for enforcement of the law in Toronto. However, since UberX is being allowed to operate illegally and with impunity, taxi drivers are growing increasingly frustrated with the fees they are required to pay and many feel all fees and charges should be suspended entirely.

The owner of a Standard taxi plate pays a renewal fee of $1279.32 each and every year[3]. Every taxi driver renewing his license pays $337.86. Toronto collects a transfer fee of $4983.33 every time a plate is issued or transferred. With the issuance of 532 Toronto Taxi License plates alone, for example, the City generated over $2.6 million.

“The training course every new taxi driver must take generates about $1 million per year,” Moini points out.

UberX drivers do not pay license fees; do not pay renewal or transfer fees; and are not required to take the City’s training course.

“This month, City Councillors are scrambling to find every dollar they can to protect important programs. Next month, they may be debating Uber. We urge Councillors to consider the link between budget shortfalls and the fact that the City is allowing an unregulated foreign competitor which uses City services to operate freely on our streets while contributing nothing.”

On January 7th, Councillor Giorgio Mammoliti sent a letter to the Budget Committee asking that all taxi fees be suspended until the current review is completed.

Taxi drivers are also required to collect HST from the first dollar of business that they do, Moini points out, and according to the City’s own estimates of 65,000 rides per day at an average cost of $25[4], Toronto cabbies collect $75 million in HST each year. 8 per cent of that goes back to the province of Ontario, another $6 million contribution which benefits the City of Toronto.

UberX drivers do not collect HST.

“Are you aware that with every Uber transaction that takes place in Toronto, the revenues are sent overseas electronically to be processed in the Netherlands in order to avoid taxation in Canada?” Moini asked Councillors.

-30-

[1] A Framework for Change, 2014, Slide 5 http://www.toronto.ca/legdocs/mmis/2013/ls/bgrd/backgroundfile-59885.pdf

[2] http://torontoist.com/2015/12/toronto-budget-shortfalls-threaten-transit-plans/

[3] http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=878415e205641410VgnVCM10000071d60f89RCRD&vgnextchannel=b3467729050f0410VgnVCM10000071d60f89RCRD

[4] A Framework for Change, 2014 Slide 5 http://www.toronto.ca/legdocs/mmis/2013/ls/bgrd/backgroundfile-59885.pdf

 

TTA figures based on these assumptions/info from City of Toronto and industry members:

TTA assumptions Budget Committee