Croatian Taxi Market to Finally be Liberalised

Total Croatia News

Services will be available through applications (albeit they are already), there will be no limits to taxi permits, and the service price will be decided by the taxi companies themselves

The new law proposal will be on public discussion from December 1, lasting for a month, and in force by the beginning of the next tourism season, roughly around next Easter, the Transportation Ministry has stated, which estimates these changes will surely provoke many reactions from current taxi services who will need to completely change their way of doing business, has reported on November 16, 2017.

The best regulator is a free market, the struggle between offer and demand, price and quality.

And this is where consumers always win, as the free market and competition gives them a right to choose, broad offer and increase of quality as well as reduction of price. The most important issue is for the market to regulate itself as it is the only proof of success.

The new law will increase the number of taxi drivers, as the current 3.000 is certainly not enough for Croatia as a touristic nation. Taxi companies will be able to choose whether to charge via the taxi metre or an electronic application. The Transportation Ministry cited a poll where 85 percent of participants chose an application.

It is estimated the market liberalisation will at least double the number of taxi drivers. It is also expected the service will become cheaper, but the service quality will also rise through an open and fair market game.

Future taxi drivers who currently don’t hold a licence will have to be at least 21 years of age, and be barred from holding a licence with prior convictions or with fines surpassing 25.000 kunas in the past two years. The future regulation will also limit the age of taxi vehicles, while currently licensed taxi drivers will be able to use the same ones for another five years. A novelty is also a written exam for taxi drivers, instead of a three year professional school.

With the new law, local administration units will also have to issue licences for taxi services to anyone, not just those from their area. This means someone from the continent will be able to legally taxi on the coast. The price of a permit will not exceed 10 percent of the average net monthly salary in the local administration area which issued it.


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