The disciplinary action stems from a 12 September incident in which a female passenger reported falling asleep during a trip around 3 a.m.
Reports disclosed that the driver allegedly failed to take her to her intended destination, instead navigating to an undisclosed location where he assaulted her.
During a formal hearing conducted by the LTO Intelligence and Investigation Division, the driver confirmed operating the vehicle at the time of the incident and admitted in a sworn statement that sexual activity occurred inside the taxi.
"We do not tolerate any form of abuse on the road, especially involving public utility vehicles that bear a significant responsibility for the safety and welfare of their passengers," LTO chief Assistant Secretary Markus Lacanilao said in a statement. "This should serve as a warning to all drivers and operators."
The LTO also found the taxi operator liable for franchise violations and for employing a discourteous driver. The vehicle involved remains under administrative alarm status, preventing its registration or transfer.
Regulators initiated the probe after the victim raised the complaint on a national radio broadcast, prompting investigators to track the driver using surveillance camera footage and digital booking records.