EN
31 July 2025 - 14:30 AMT

Government forgives AMD 1.3 billion in taxi driver taxes

The Armenian government has decided to write off 1.3 billion dram in taxes and penalties owed by individual taxi drivers. The decision was made during the cabinet session on July 31.

Between 2015 and 2019, taxi drivers were required to obtain licenses and pay state fees to operate legally. Although legal changes later rendered these provisions obsolete, the activity continued to be treated as subject to licensing.

This amnesty is aimed at encouraging individual drivers who offer passenger transportation services to operate within the legal framework.

Starting September 1, 2024, new regulations require that all passenger transport services be provided via digital platforms.

According to the government’s rationale, over 90% of the passenger transport market using light vehicles is currently handled through platforms that receive and assign ride orders. Due to the lack of demand for ride services outside these platforms, individuals now rely on them for business, which obliges them to pay a state fee. This fee is expected to gradually increase, reaching up to 5% of the total fare per ride by January 1, 2026.

Since the forgiven amount was not included in projected budget revenues, the government opted to cancel the debts, removing the financial burden linked to the now-obsolete licensing requirement.