Sources with the Beijing Municipal Communication Committee saidThursday that the outbreak of SARS is causing people to shun public transportation such as buses and taxis, which is having a devastating effect on taxi companies and drivers.

Therefore, the sources noted that the committee, the municipal financial bureau and the tax bureau have adopted supportive policies to ensure normal taxi operation and minimize economic losses.

According to the policies, all taxis operating in the city of Beijing will be charged 50 percent of the normal rental fee for the period from May to July.

Drivers living in quarantined areas or who are affected by quarantine are authorized to temporarily suspend operations. They are entitled to maintain their employment contracts and to receivea salary and insurance from the taxi companies.

Private taxis which suspend operations are also eligible for compensation from the government.

Several kinds of fees imposed on taxi companies and drivers, such as road maintenance fees and individual income tax, have beenreduced or eliminated.

In addition, taxi companies are eligible for preferential bank loans during the epidemic, according to the policies.

The committee said it would reevaluate the situation in next three months to consider further policy adjustments.

(Xinhua News Agency May 9, 2003)