Taxi users are not aware of the regulations licence plates are sanctioned to, independent operator Paul Lewis says.

Mr Lewis has what's known as a Perth plate that allow him to pick up from areas such as the Launceston Airport and Country Club of Tasmania.

He is allowed to drop customers in town, however he is unable to pick customers up while in the city unless they are going back into his area.

"Imagine you pick people up form the casino, drop them off at a pub and three drunks try and get in. You've got no control and they want to go to Mowbray. You have to say 'sorry mate, I can't take you'. You get abused, you get assaulted for rejecting a fare because it's out of my area," he said.

"It's a stupid law. I can see the other side of it, but you've got to move with the times."

The state government has released a plan to allow a fair go for taxi and ride-sourcing operators.

The Department of State Growth said the taxi and hire vehicle regulatory framework needed to be updated to adequately accommodate current and future ride-sourcing requirements.

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Mr Lewis said he had nothing against ride sharing, but he wanted the playing field to be even, with either regulation or government fees.

He said the taxi industry, and ride sharing offerings, cannot meet the demand on busy nights such as New Year's Eve, or events such as Festivale.

"It's not a good look for tourism and locals. That's why you see on Facebook people complaining about a taxi that did this or a taxi that did that. It's because people don't know these stupid rules," he said.

When ride sharing apps were introduced in cities such as Melbourne, the state's government deregulated the industry. That's what Mr Lewis wants to see happen in Tasmania.

The department said riding sharing services had created uncertainty for the traditional taxi industry.

Following "extensive" industry and community consultation a new draft bill has been released for comment aiming to provide fair and practical regulation for the industry.

Key elements of the new framework include no new owner-operator taxi licences to be issued for five years.

Annual administration fees, safety requirements and accountabilities and benefits to consumers through increased competition for booked services, while ensuring safety standards are maintained, are expected to be put in place as part of the framework.

Submissions for the framework close on February 21, and can be made by visiting stategrowth.tas.gov.au.

Taxi drivers who are caught operating out of their area are fined.

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