The news follows concerns that there were too many taxis on the road. 

The changes are set to alleviate the issue before ride-sharing service Uber starts business in Tasmania later this year.

Infrastructure Minister Rene Hidding announced on Sunday that the annual release of new licences would be suspended in Tasmania for three years. 

The council’s president Roger Burdon said there had previously been issues with too many licenses in Tasmania.

“We greatly appreciate what the government is about to do,” Mr Burdon said.

“The problem was that there was never any incentive or any trigger for a warrant of the release of licences. 

“If there was an increase in population or there was more work then that would be great, but we just became inundated with licenses and there was only so much of the pie, so our earnings actually became less.” 

As of the end of August, Tasmania has 633 vehicles registered in the taxi or luxury hire car category, up from 560 five years ago.

Mr Hidding said the changes would provide the government with time to observe any impact on the taxi industry from the introduction of Uber to Tasmania. 

“We have consistently acknowledged the long-stated concerns of the taxi industry in relation to the legislated annual release of taxi licences and its dampening effect on the value of taxi licences,” Mr Hidding said. 

“To alleviate these concerns, I am pleased to announce the government will suspend the annual release of new taxi licences across the state for three years.” 

Mr Hidding said Uber starting up in the state would offer more job opportunities.

“[This] will allow Tasmanians more consumer choice, competition and productivity benefits, as well as potentially providing hundreds of Tasmanians with job opportunities in a new and exciting market,” he said.