In Budapest, Hungary, the Taxisok Érdekvédelmi Szervezete (Taxi Drivers’ Union) announced a public demonstration taking place on January 15, 2025. This protest signals a culmination of growing tensions between taxi drivers and the Hungarian government, as the taxi professionals seek more favorable taxation conditions and increased safety measures.

The demonstration, which commenced at the historic Hősök (Heroes') Square, is set to continue in front of various key government ministries, including the Ministry of Economic Development and the Ministry of Finance.

According to information from the union's president, Ádám Kiss, approximately 450-500 taxi drivers are expected to participate in the demonstration, with the protests continuing until concrete negotiation dates are provided.

Key issues addressed in the protest include raising Hungary’s current VAT-exemption threshold from HUF 12 million to HUF 18 million, a change the European Union approved last summer but has not yet been implemented domestically.

The taxi union proposes this shift as an initial step, calling for a further increase to HUF 24 million to assist drivers in managing economic inflation and escalating operational costs without having to increase user tariffs, which are fixed.

In a notable development, Márton Nagy, a government official, disclosed at a press conference that the Orbán administration is already contemplating raising the VAT-exemption limit to the proposed level of HUF 18 million.

The taxi union, however, advocates for a distinct taxation system for taxi drivers, suggesting a 5% revenue tax model on total earnings.

Negotiations with the Ministry of Economic Development on this front remain a focal point.

Safety concerns also underpin the protests, with the union citing a rise in attacks against drivers.

They demand that taxi drivers be granted the status akin to public service operators to bolster protection.

Enhanced security measures, such as the introduction of cameras inside taxis, have also been put forth as preventative measures.

Despite established contact with relevant ministries and the Budapest municipal government, Ádám Kiss cited a lack of substantive discussions, prompting the return to protest action.

The union underscores the need for revised conditions that address economic feasibility and security for taxi drivers in Budapest.

The current situation reflects a broader tension between individual entrepreneurs and the regulatory frameworks within Hungary, particularly in an environment where inflation and regulatory compliance intersect.

Taxi drivers in Budapest, who play a critical role in urban transportation, are pushing for terms that mirror the economic realities they face while promoting fair work conditions.

In summary, the protest by the taxi drivers in Budapest underscores ongoing socio-economic challenges in the European small business sector, where engagement with government bodies remains critical to achieving desired reforms.