A taxi driver was forced to withdraw money at gunpoint after picking up a passenger in Rotorua.

Police said the driver picked up a man in Selwyn Heights early yesterday. The man produced a pistol after his payment was declined.

Detective Sergeant Jonathon Brady said the driver was forced to drive to an ATM and withdraw his own money.

The passenger took the money, along with cash from the taxi.

“Thankfully, the taxi driver was uninjured but is understandably shaken by this incident,” Brady said.

Just before 1am today, a man suspected to be the passenger was seen at a Rotorua bar before leaving in a different taxi.

When police stopped the taxi, an airgun was found, and a man was arrested.

A 26-year-old is due to appear in the Rotorua District Court today, charged with aggravated robbery and unlawful possession of a firearm.