Taxi Services Without Airport Contracts May Face Fines of 50,000 Drams: New Draft Legislation

The Ministry of Territorial Administration and Infrastructure of Armenia has presented a draft aimed at amending legislation in the taxi services sector. The ministry seeks to create equal licensing conditions for companies and individual entrepreneurs providing transportation services with passenger taxis.

Specifically, it is proposed to establish an annual licensing fee of 100,000 drams for organizing passenger transportation with taxi vehicles. Currently, 46 companies provide taxi services with 1 to 4 vehicles and pay an annual state fee of 100,000 drams for a license, while 67 companies with 5 or more vehicles pay an annual fee of 200,000 drams. The state license fee for individual operators with a single passenger taxi vehicle has been removed. The ministry believes this creates unequal conditions in the sector.

Additionally, the ministry proposes to regulate the activities of organizations that register and pass on passenger orders through electronic platforms. This sector is practically outside of oversight, creating unequal competitive conditions for legal operators with tax obligations. It is suggested that the activities of registering and transferring passenger orders through electronic platforms be subject to notification, and that such orders be handed over exclusively to licensed organizations and individual entrepreneurs.

Simultaneously, the ministry considers it necessary to establish provisions regarding the health status of drivers and the validity of their driving licenses to enhance safety and service quality in the sector. It is proposed to require that individuals seeking a license not be listed in the register of drug users at medical establishments and undergo mandatory preliminary medical examinations as stipulated by law.

Moreover, designated stops for passenger taxis cannot be established in areas serving intercity regular routes, including bus stations and terminal points. A mandatory condition is set that organizations with 30 or more vehicles must have at least one vehicle designated for persons with disabilities.

The ministry also intends to regulate taxi services provided in airport areas. Specifically, only organizations and individual entrepreneurs authorized to operate taxi services at the airport will be allowed to use taxi parking spaces in these areas. Airport taxi service licenses will only be issued to those organizations and individual entrepreneurs that operate vehicles no older than seven years, with white basic bodies, factory fuel systems, and marked with “Aerotaxi” signage and chessboard patterns.

Additionally, taxis must be equipped with calibrated taxi meters or satellite positioning systems (GPS, GLONASS, etc.). Information about the taxi service provider's name and the driver's name must be displayed. Taxi services are also required to post visible fare schedules displaying minimum fare and any applicable wait charges.

The ministry has also stipulated penalties for various violations. Operating without a meter, with a malfunctioning meter, or without a satellite positioning system will result in a fine of 30,000 drams. Transporting passengers without a fare schedule will incur a penalty of 20,000 drams. Operating taxi services in airport areas without a contract with the airport will lead to a fine of 50,000 drams. Failing to have at least one vehicle for persons with disabilities among organizations providing taxi services with 30 or more vehicles will also result in a fine of 50,000 drams. Lastly, transporting passengers from bus stations or coordination points serving regular routes will incur a fine of 50,000 drams.