All-island taxi plans to go before Tynwald
Taxis will be allowed to ply for trade from anywhere in the Isle of Man under proposals going before Tynwald.
Drivers are currently restricted to picking up fares within their licensing district, of which there are four.
It means a taxi dropping off a customer outside its own district cannot earn any money on the return journey.
During a public consultation, 78% of respondents favoured the change, which the government argues has economic and environmental benefits.
The Department of Infrastructure believes relaxing the restrictions will boost drivers' earnings and cut down on unnecessary journeys.
Infrastructure Minister Phil Gawne said: "It is a nonsense in this day and age to have taxis running round the island empty because of outdated restrictions on where they can operate.
"Not surprisingly, there are those in the taxi trade who want to protect the status quo.
"This is indeed a significant change, which is why I have committed the department to review its effects in 12 months' time. Our priority must be in the best interests of the public, the customer and the environment."
The proposal goes before Tynwald later in the month.