Not only in the Netherlands, but also in Belgium taxi entrepreneurs are struggling. Perhaps even more difficult, because the taxi sector in Belgium is structured differently and taxi companies - unlike in the Netherlands - carry less target group transport. With 80% of the total annual turnover, this is the cork on which the Dutch taxi sector floats. In Belgium, the corona crisis weighs even more heavily on the activities of taxi companies and rental car companies with drivers, the French-language TV RTBF discovered (among others).

Since the start of the corona crisis and the lockdown, in mid-March, 90% of the entrepreneurs have stopped. Without additional government support, the sector expects many bankruptcies and layoffs in the coming months. The taxi industry is on the verge, says Pierre Steenberghen, Secretary General of GLT-Taxi, the national grouping of taxi companies and car rental companies with drivers. 

“The sector was not forced to close its doors. The Belgian government has always viewed the taxi sector as essential. Especially to transport hospital staff or drivers or people who have no other alternative to move around. But in fact, the activities of 90% of the companies have completely stopped. ”, said Pierre Steenberghen.

The situation in the sector is so dramatic because especially the cessation of tourist activities, events and the catering industry weigh heavily on the taxi sector. Those sectors - and business - traditionally account for the majority of taxi passengers. And while the taxi industry is seen as "essential," state aid is not keeping up with that "essential character."

Taxi companies and LVC companies have received help from the government in various ways. “The three regions have provided flat-rate support to cut costs. In Wallonia, companies that had completely stopped received € 5.000 and in Brussels it was € 3.000, but without a complete closure, ”said Steenberghen. “We also obtained deferral of social security, VAT and regional taxes.”

In Brussels, for example, Rudi Vervoort, Prime Minister of the Brussels-Capital Region, decided relatively quickly to abolish the annual regional tax that the sector has to pay (€ 575 by taxi and € 682 for rental cars) for this year. And while this help is gratefully accepted and provides some air temporarily, it will not be enough. Simply because the fixed costs are too high and without prospects for a long-term financial return, companies cannot sustain it. The sector is now asking for guarantees that temporary unemployment and the reduction of social security will be maintained for now.

Sam Bouchal, a six-car taxi operator and often spokesman for the Brussels taxi sector, also complains. He had to stop his activities. His company ultimately generated more losses than income. Bouchal's six employees are unemployed. As in the Netherlands, the fight is to lower fixed costs to keep afloat: postponement of lease contracts and suspension of insurance. To avoid numerous bankruptcies and massive layoffs, the extension of temporary unemployment will be the determining factor “I have colleagues who have already started to lay off workers. We have not yet made that decision. But

"The day the government will no longer provide this aid, we will have serious problems," Rudy Claude, secretary general of airport carrier Taxi Autolux, told RTBF. Autolux has approximately 350 employees, 95% of whom are temporarily unemployed. The company is highly dependent on Brussels National Airport in Zaventem, where the Brussels company has the majority of permits. The last few weeks there are hardly any take-offs and landings there.  

The Belgian government has announced the extension of temporary unemployment to the end of June. But the consequences of the crisis extend beyond the end of June. Autolux - and actually the entire Belgian taxi sector - would like to see an extension of the unemployment measure until August 31. In addition, a continuation of the reduction of social security contributions. "Simply postponing payroll tax is not enough," says Bouchal. “How can we pay for this, even in six months, when there is no more cash flow and therefore no more cash? The government needs to realize that the sword of Damocles is hanging over our heads, "adds a worrisome Bouchal.

Until activity in sectors such as tourism, events and the catering industry picks up again, a concerned Belgian taxi sector expects a catastrophic year - and hopes for strong signals from the Belgian government.

Also read: Taxi market Flanders embraces Arrive booking platform