A TAXI and car have collided at the intersection of Ligar and Houston Streets in Stawell.
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The incident is believed to have occurred just after 7pm.
The driver of one of the vehicles was taken to hospital for observation after suffering from neck pain.
Both vehicles were extensively damaged in the collision.
Stawell police sergeant Rod Davis said as a result of their investigations one of the drivers has been issued with a penalty notice for failing to obey a give way sign at the intersection.