A panel structured by the Mayor of New York, Bill de Blasio has approved a package of 500million dollars to relieve the New York taxi drivers from the debt, imposed upon them through the medallion system.
The matter was looked upon by the authorities after the Taxi drivers association had protested about a fell in debt after Uber and Lyft took over the means of general transport, damaging the taxi business across the city.
Following the takeover, the taxi services had fallen into an immediate debt, with some on the verge of bankruptcy. Almost all the taxi drivers of New York are immigrants and were asked for inflated prices for the permit. The taxi groups had demanded for a scheme that would take over the millions of debt.
New York Mayor, Bill De Blasio, looking upon the matter, had constructed a panel to come up with a scheme that would aid the cabbies get pulled out of the financial crisis. State and city leaders are planning to announce legislation on Friday that would relieve medallion owners from tax liability for debt forgiveness.
The medallion system was introduced by the authorities of NYC that required the taxi drivers to own a permit in order to operate a taxi. The medallion was worth a million dollars, with the price of the car included within.
The permit proving to be a financial burden for the drivers is now likely to fall down within a considerable range through the scheme.