Hungarian Taxi Drivers Stage Protests Amid Calls for Tax Reforms
Drivers demand better taxation conditions, security enhancements, and limits on taxi numbers as government signals potential concessions.
On Wednesday, January 15, 2025, around 450-500 taxi drivers in Budapest plan to stage demonstrations at Heroes' Square and several government ministries.
The protests, organized by the Taxi Drivers' Advocacy Organization (TÉSZ), aim to push for better taxation conditions, a secure working environment, and limits on the number of taxis allowed to operate in the city.
TÉSZ is seeking meetings with representatives from responsible ministries to discuss these demands and intends to continue demonstrations until a formal meeting is scheduled.
One of the key demands of the taxi organization is the immediate increase of the value-added tax (VAT) exemption threshold from 12 million to 18 million Hungarian forints, as approved by the European Union in the summer of 2023. Ádám Kiss, President of TÉSZ, stated that this level is considered the first step, with hopes to eventually increase it to 24 million forints.
He emphasized that taxi drivers are in a unique situation where they struggle to make ends meet.
Upon reaching the current 12 million cap, the drivers cannot offset rising costs with increased travel fares due to the fixed fare structure.
In response, the Orbán government appears to be preemptively addressing this demand.
Márton Nagy announced in a recent press conference that plans are underway to raise the VAT exemption threshold to the requested 18 million forints.
However, Kiss pointed out that the ideal scenario would involve creating a separate taxation regime specifically for taxi drivers, suggesting a system where 5% of their total revenue could be taxed.
TÉSZ wishes to engage with the Ministry of National Economy to discuss this proposal.
"We have heard many promises, but it's crucial that our concerns are taken seriously," Kiss noted, referencing past assurances of tax reforms that have yet to materialize.
Security issues have also been raised as a focal point for the demonstrations, citing a rise in attacks against taxi drivers.
The organization is advocating for drivers to receive the same legal status as public service providers, which could serve as a deterrent.
Furthermore, TÉSZ calls for the installation of cameras in taxis to prevent future assaults.
While changes to the fare structure are not the primary aim, Kiss acknowledged that inflation and increasing costs could necessitate future discussions on tariff adjustments.
As of now, the protests will continue until the Ministry of Economy provides a concrete date for discussions.
In response to their appeal, the city administration has agreed to meet with the taxi drivers on January 20.
The protests, organized by the Taxi Drivers' Advocacy Organization (TÉSZ), aim to push for better taxation conditions, a secure working environment, and limits on the number of taxis allowed to operate in the city.
TÉSZ is seeking meetings with representatives from responsible ministries to discuss these demands and intends to continue demonstrations until a formal meeting is scheduled.
One of the key demands of the taxi organization is the immediate increase of the value-added tax (VAT) exemption threshold from 12 million to 18 million Hungarian forints, as approved by the European Union in the summer of 2023. Ádám Kiss, President of TÉSZ, stated that this level is considered the first step, with hopes to eventually increase it to 24 million forints.
He emphasized that taxi drivers are in a unique situation where they struggle to make ends meet.
Upon reaching the current 12 million cap, the drivers cannot offset rising costs with increased travel fares due to the fixed fare structure.
In response, the Orbán government appears to be preemptively addressing this demand.
Márton Nagy announced in a recent press conference that plans are underway to raise the VAT exemption threshold to the requested 18 million forints.
However, Kiss pointed out that the ideal scenario would involve creating a separate taxation regime specifically for taxi drivers, suggesting a system where 5% of their total revenue could be taxed.
TÉSZ wishes to engage with the Ministry of National Economy to discuss this proposal.
"We have heard many promises, but it's crucial that our concerns are taken seriously," Kiss noted, referencing past assurances of tax reforms that have yet to materialize.
Security issues have also been raised as a focal point for the demonstrations, citing a rise in attacks against taxi drivers.
The organization is advocating for drivers to receive the same legal status as public service providers, which could serve as a deterrent.
Furthermore, TÉSZ calls for the installation of cameras in taxis to prevent future assaults.
While changes to the fare structure are not the primary aim, Kiss acknowledged that inflation and increasing costs could necessitate future discussions on tariff adjustments.
As of now, the protests will continue until the Ministry of Economy provides a concrete date for discussions.
In response to their appeal, the city administration has agreed to meet with the taxi drivers on January 20.
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