Rising fuel prices: taxi industry calls for zero-percent VAT

Given the significantly higher fuel prices, the Federal Association of Taxi and Rental Cars has written to the Federal Government with a letter. According to the association, developments on the international energy markets are placing a substantial burden on the taxi industry. The letter is addressed, among other things, to the Federal Minister of Finance, the Federal Minister for Economic Affairs and Energy, the Federal Minister of Transport, and to the SME Commissioner of the Federal Government.

Impact of High Operating Costs

As the association notes, taxi companies are particularly affected by rising fuel costs. Fuels accounted for a substantial share of ongoing operating costs. At the same time, the industry consists predominantly of small and medium-sized enterprises, often family-owned, whose economic leeway is limited.

Taxis are also a component of the public mobility provision. In particular in times and regions with a limited supply of public transport, they secure individual mobility.

Tariff binding complicates short-term adjustments

According to the association, taxi companies cannot pass on increased costs to their customers in the short term. Fare prices are set by authorities. Changes to the tariffs require extensive administrative procedures at the municipal level. A quick adjustment to short-term cost increases is therefore practically not possible.

Proposals for time-limited relief measures

Against this background, the Federal Association of Taxi and Rental Cars proposes several measures. These include an energy tax refund for fuels used in taxi operations, in line with existing regulations in the Energy Tax Act. In addition, the association advocates a temporary reduction of the energy tax on fuels.