Taxi drivers threatened to go into the gray zone because of taxes

Taxi drivers threaten the authorities with going into a gray zone and increasing accident rates. The industry has found itself on the verge of survival — new cars have doubled in price in three years, leasing rates exceed 30% per annum, and credit resources for taxis are practically unavailable. In addition, the procedure for calculating VAT has become an additional burden.

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The Public Council for Taxi Development (OCRT), in its appeal to the Ministry of Economic Development and the Ministry of Finance, asked to reduce VAT by 50%, as it is done in the field of catering. Otherwise, the industry will face bankruptcy, fragmentation of enterprises into small firms and retreat into the shadows.

"The taxi market is going through a difficult period. And the introduction of VAT of 5%, 7% and up to 20% since the beginning of the year has had an even greater impact on profitability," Ruslan Satretdinov, head of the Ritm taxi company, told Izvestia.

According to the Avenue Group taxi company, car companies with more than 50 cars, which have revenue of over 60 million rubles a year, found themselves in a problematic situation.

"The increase in the actual tax burden is up to 30-40% of net profit, which has already led to a sharp decrease in profitability," said Omar Bahamaev, CEO of this company.

According to the OCRT, an increase in the tax burden may lead to an increase in the number of illegal shipments and, as a result, to a decrease in budget revenues at all levels. Taxi drivers will begin to move into a gray area where control over the safety and quality of transportation is minimal.

Without targeted support measures, the market risks losing the legal segment of passenger taxis, according to a letter from a public organization to the Ministry of Finance and the Ministry of Economic Development.

Read more in the exclusive Izvestia article:

Checkers and don't go: taxi drivers threatened to go to the gray zone because of taxes