The Taxi Drivers Association has called to immediately stop plans to introduce a government taxi line.
In a letter to Transport Minister Mohamed Ameen, the association said it would cause irreparable damage to the state finances and impoverish families.
It added that the government's plans lack transparency, while taxi drivers and passengers were not consulted.
The association predicted that a government taxi line will be the biggest failure among the recent projects under the current administration.
It estimates that between MVR 150 and MVR 200 million will be incurred on salaries and maintenance in the first year alone, at a time when government expenditures need to be cut dramatically.
The letter added that there are about 3,000 drivers currently involved in taxi services in the country and no feasibility study and market assessments have been conducted before making the plans.
It further noted that more developed countries have also failed in carrying out government taxi lines.
The association highlighted the failures in India, Sri Lanka, Bangladesh, Kenya, Mexico and some European countries.
The letter came amid efforts to recruit employees through Maldives Transport and Contracting Company (MTCC) for the taxi line.
