Two thirds of the 3,329 taxis in east China's Wenzhou City were off the road Tuesday, and dozens of cabs were smashed as their drivers refused to join a strike in protest at what are believed to be China's most expensive taxi licenses.

Taxi drivers told Xinhua they were protesting against low incomes because of rising rental fees. They were also protesting at having to pay vehicle owners and agents 3,000 to 4,500 yuan a month in fees.

The cost of a permanent license for a taxi has risen from more than 200,000 yuan (30,000 U.S. dollars) in the 1980s to 1.2 million yuan, but the licenses are hereditary and can be passed down from generation to generation.

Taxi owners usually subcontract cars to agents who hire drivers from Anhui and Hunan provinces.

As owners and agents charge high rental fees, drivers said they could only earn up to 2,500 to 3,000 yuan a month even if they worked for 12 hours a day.

The government arranged for more than 100 taxis to provide essential transport around the city's airport, railway and bus stations and docks. The police are to charge eight people who allegedly vandalized taxis.

Drivers said they had recieved leaflets, calling for them to take action, in gas stations and restaurants. Police had detained 12 people for handing out leaflets or damaging taxis.

As of 8 p.m., few taxies were on the streets.

Drivers told Xinhua that they were afraid of being attacked. A driver surnamed Yu said his taxi might be attacked if he went to busy roads.

Police said four taxis had been attacked from 5:30 p.m. to 8:30 p.m. on Tuesday. Some strikers lured working drivers to suburban areas and attacked the taxis and drivers, a police spokesman said.

More than 2,000 police were patrolling on streets.

A municipal government spokesman said the authorities would support the drivers' reasonable demands and install new taxi meters to raise their income. More taxis will be released to the city's traffic and new measures would be taken to improve taxi services.

The new measures would be announced at a press conference on Wednesday , the government said.

(Xinhua News Agency July 28, 2009)