In May 2000, the Department of Transport Management issued a notice to halt new registration of taxis in Bagmati Zone speculating an oversupply and seeking time to investigate the situation. The ban was initially expected to last only 90 days for the formation of a Taskforce for the preparation of a study report which would help the decision-makers revisit the decision in light of evidence.
Fifteen years have passed and as of July 2015, no Taskforce ever came into life for this, neither was such a report prepared and the ban lasts till date. This, taken into consideration with the agreement between Federation of Nepalese National Transportation Entrepreneurs (FNNTE) and three related government agencies requiring a recommendation from FNNTE for the issuance of service license or route permits for any transportation service has successfully created an maintained the Great Wall of entry barrier in the the taxi industry, getting past which comes with a very high cost.
This paper throws light on that cost and identifies effects of the taxi-registration ban and potential outcomes when lifting the same.
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