Obtaining the Permit for Taxi Service to Become Mandatory in the Regions

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The transportation of passengers by taxi (category M1) within the boundaries of the municipality is added to the list of permitted activities.

According to the explanatory note of the draft law, one of the challenges of the reform on regular domestic passenger transportation is the unfavorable situation in bus stations and unregistered persons, who often transport passengers with minivan-type vehicles, bypassing bus stations.

In 34 out of 63 municipalities, there is an average of 40 taxis. In 18 municipalities, the average number of taxis is 100. Four municipalities have an average of 200 taxis, and seven municipalities have more than 400.

According to the draft law, the organization and management of passenger transportation by taxi within municipalities will be overseen by the mayor of the municipality, a structural unit of the mayor's office, or a legal entity established by the municipality. The mayor or a structural unit of the city hall will be granted the authority to issue permits for taxi transportation.

Following the Law of Georgia on Road Transport, permits are issued for a minimum period of one year. Additionally, the representative body - the City Council - will have the authority to determine the validity terms of the permits.

Transporting passengers by taxi without the appropriate permit will result in a fine of 200 GEL, while a fine of 100 GEL will be imposed for transporting passengers in violation of permit conditions.

The Ministry of Internal Affairs will oversee activities conducted without permission.

If the draft law is passed, municipalities (except Tbilisi) will be given a deadline of June 1, 2025, to ensure that data on holders of taxi transport permits are reflected in a unified information base. The rules for creating, updating, and processing this database will be determined by the Government of Georgia by January 1, 2025.

The fee for obtaining a permit, if taken for one year, is likely to be 100 GEL. This amount will be credited to the municipality's budget. According to the explanatory note, the nominal value of the income received from permits in the municipality's budget is 488 thousand GEL in the first year of introducing permit activity. During the introduction of permit activity and the subsequent 3 years, it is approximately 1,952,000 GEL, and from 2025 to 2033, a total of approximately 4,392,000 GEL will be received.

The authors of the draft law also calculated the administrative costs, totaling 1,378,598 GEL by 2025. For example, 208,800 GEL will be allocated for financing taxi lights, and 927,654 GEL will be allocated for the wages of municipality employees.

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