Violating Uber drivers could be stripped of licence

Budapest, February 10 (MTI) – Under a proposal now before the government, ridesharing Uber service providers could lose their licence plates if they were caught breaking rules, János Fónagy, a state secretary at the development ministry, said on Wednesday.

Fónagy spoke following talks between the government, taxi drivers’ unions and related authorities, and pledged that the government would step up against Uber drivers that “neglect Hungarian rules, break laws, or fail to pay taxes”.

The state secretary also complained that Uber’s Netherlands-based central office has not provided any help to the Hungarian authorities’ investigations.

Responding to requests from taxi drivers, the ministry will also consider banning Uber’s mobile phone application, said Fonagy.

The talks are scheduled to continue in the near future, however, taxi drivers’ union MTSZ said that Wednesday’s conference had yielded no results.

MTSZ, representing about 300 drivers, will decide whether to continue their participation in the negotiations.

Hungary’s tax authority warns Uber drivers to pay taxes

Budapest, February 6 (MTI) – Hungary’s tax authority NAV has published an information pack for Uber drivers, warning them that their ride-hailing services are a taxable activity and they should pay VAT.

On its website, NAV said that private individuals are not allowed to provide taxi services unless they are registered with the authority and provided a detailed account of the possible forms of enterprise in which drivers can legally do business.

NAV noted that drivers have an opportunity to apply for tax exemption if their income does not exceed an annual 6 million forints (EUR 19,400). But they still have to pay tax on the mobile application from a foreign provider used in their service.

Uber drivers, even if they are exempted from tax payment, are obliged to provide their customers with an invoice, indicating the fact that they are tax-exempt, the website said.

Following a recent audit in which it was established that some two-thirds of Uber drivers were not registered and did not have a tax number, NAV decided to change policy and stop that practice. Under the new rules, drivers are required to become self-employed entrepreneurs with a tax number and qualifications required for issuing an invoice after the ride.

Taxi drivers staged a four-day partial blockade two weeks ago against Uber, complaining that the government had failed to ensure a level playing field in the passenger transport market. Uber drivers have since been told by their Dutch headquarters to come clean to the tax authorities.

Audit finds most Uber drivers without tax numbers

Budapest, February 3 (MTI) – An audit by the tax authorities found that a vast majority of drivers at the ride-hailing service Uber have been operating without a tax number, Csilla Tamás Czinege, deputy state secretary at the economy ministry, said.

Tamás told public Kossuth radio on Wednesday morning that audits started last weekend included some one hundred spot checks and two-thirds of drivers could not show a tax number proving registration with the tax authority. She said the Uber drivers said their company was about to change policy and would not be allowed to provide services without a tax number in the future. Under new policy, the drivers must become self-employed entrepreneurs with a tax number and qualifications to issue an invoice after the ride.

Records show the first invoice for Uber services has been issued and the tax authority is checking that it is in line with all regulations, Tamás said.

Taxi drivers staged a four-day partial roadblock two weeks ago against Uber, complaining that the government had failed to ensure a level playing field in the passenger transport market. Uber drivers have since been sanctioned by their Dutch headquarters to come clean to the tax authorities.

Government: Uber drivers must comply with Hungarian regulations

Budapest, January 25 (MTI) – Drivers belonging to ride-hailing service Uber must comply with Hungarian legal regulations as well as travel-safety and tax rules, an economy ministry official said on Monday.

Andras Tallai, state secretary for tax affairs, told public television M1 that people who use the service should be wary since they cannot know when a driver received his driving licence or what state of repair his vehicle is in.

If someone’s activity is taxable in Hungary — for instance if they provide a transport service — then they must comply with the same laws as those, such as taxi drivers, who pursue their activities legally, he said.

After the tax office, which operates under the roof of the economy ministry, announced on Friday that it will show zero tolerance in respect of abuses, the Dutch company running Uber drivers reported that 1,200 drivers have logged onto its service.

Tallai noted that the tax office has found that not a single Uber driver has a tax number or has reported to the tax authority.

Photo: MTI

Taxi drivers end demo – Update

Budapest, January 21 (MTI) – Taxi drivers ended their demonstration against ride-hailing company Uber in downtown Budapest after talks with the development ministry on Thursday afternoon.

Earlier in the day, two state secretaries from the development ministry, Gabor Czepek and Laszlo Taso, met representatives of the taxi drivers for talks.

Zsolt Gelencser, one of the demonstration’s organisers, told a press conference after the meeting that an agreement was reached with the government representatives on starting talks next week concerning the law on taxi services and how the operations of Uber may comply with rules governing taxis.

He thanked members of the public for their patience during the protest and he also thanked the police for their help. He added that the demonstration had met its goal.

Another organiser, Csaba Czifery, said government representatives at the talks declared they were on the side of taxi drivers. He said the taxi drivers will be represented by a delegation at next week’s talks and they expect that at least four to six weeks will be necessary to introduce effective rules.

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The development ministry said the taxi drivers’ representatives promised at the talks that the demonstration would end on Thursday afternoon. The government representatives said they are “on the side of the taxi drivers who obey laws and pay taxes”. The ministry added in a statement it had been agreed that taxi services can only be provided according to the rules of a government decree and under equal conditions for all participants. Talks will continue next week and the ministry said it awaits proposals from taxi representatives.

The demonstration in the junction of Bajcsy-Zsinlinszky Road, Jozsef Attila Road and Andrassy Avenue entered into its fourth day on Thursday morning, with police securing the area and controlling traffic. Cars were allowed to use one lane in each direction.

The government yesterday said it would heed to calls by taxi drivers for a level playing field and talks would be started soon on fairer regulations for the long term. It also said banning Uber would not be ruled out if the company did not stick to the rules.

Government office chief Janos Lazar told a regular press briefing on Thursday that the government needs to help taxi drivers because it is a regulated market, and if the state regulates a market, it should involve protecting it. A common denominator needs to be found with the taxi drivers on how things should be regulated, he added. The government wants everybody in Hungary to respect the law and pay tax, plus it wants to ensure the high quality and transparency of taxi services, Lazar said.

Prime Minister Viktor Orban asked people at the cabinet meeting whether the government members were using Uber. None said they did but the majority of younger people working for the government are Uber users, Lazar added.

Photo: MTI

Government supports taxi drivers’ call for fair market conditions

Budapest, January 20 (MTI) – The government has adopted the position that the taxi drivers demonstrating in Budapest should be supported in their call for fair conditions on the passenger transport market, state secretary Bence Tuzson said after a cabinet meeting on Wednesday.

The government sees strict regulation justified in this case, which would apply to all players, he said. The government will start talks with taxi drivers about long-term regulations which can benefit everyone, include sanctions for offenders and are feasible from a tax point of view. On the other hand, until this agreement is reached, for at least six weeks, a temporary system needs to be put in place which can exercise sanctions against those who break current rules. This temporary system is likely to include audits by the tax authority NAV.

The government asks taxi drivers to stop demonstrations and start talks. The National Development Ministry will represent the government during the talks, Tuzson said.

Asked if ride-hailing company Uber would be banned, Tuzson said there is no talk of banning, it is all about across-the-board conditions and strict regulations for passenger transport. He added however that the end of the whole process could be that if Uber does not keep to rules it will be banned. The government will not hold talks directly with Uber nor will it invite them to negotiations, he said.

Taxi drivers have been obstructing traffic in central Budapest since Monday morning, protesting against Uber.

Photo: MTI

Taxi drivers to continue demonstration until agreement on passenger transport rules

Budapest, January 20 (MTI) – Budapest’s taxi drivers are open to holding talks with the municipality and the government on their demands but will continue their demonstration until the sides reach an agreement on new passenger transport rules that will apply equally to every player in the sector, an organiser of the demonstration said on Wednesday.

The drivers started to demonstrate on Monday morning, urging government action against car dispatcher Uber.

Zsolt Gelencser told a press conference that taxi drivers want the government to convene talks with the parties involved by Friday at the latest, with an agreement being reached by the end of next week. Gelencser said that if this demand is not met, taxi drivers will begin demonstrating throughout the country.

Gelencser said the drivers had asked Peter Juhasz, deputy leader of the opposition Egyutt party, to get Hungary’s political parties involved in the debate so that their cause can gain more support. He said taxi drivers want fairer competition in the passenger transport sector.

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Juhasz said he did not want the matter to become one of party politics, adding that it should strictly be about ensuring fair competition on the market. He called it unacceptable that while taxi fares are regulated centrally, certain other market players can get away with changing their prices. Taxi drivers having to pass strict checks while other players do not is also unfair, he said.

Juhasz said imposing similar strict regulations on other players in the sector may not necessarily be the best solution. He said taxi drivers are ready to continue working under the same regulations but then expect them to apply to other players as well, and are also open to the loosening of transport rules. Juhasz said any new regulation will have to reflect the new market conditions.

Photo: MTI

Taxi drivers continue to obstruct traffic in central Budapest

Budapest, January 20 (MTI) – A continued demonstration of taxi drivers has considerably slowed traffic in the Deak Square area in central Budapest.

Similarly to Monday and Tuesday, the protesters blocked the junction of Bajcsy-Zs. Road, Andrassy Avenue and Jozsef Attila Street, leaving only one lane in each direction for traffic to pass. The blockade has caused jams on Grand Boulevard and along the Danube’s Pest-side embankment, too.

Taxi drivers started their demonstration on Monday morning, urging government action against ride-hailing service Uber.

Photo: MTI

Taxi organisations demand government apply laws to all transporters

Professional transport organisations and taxi drivers have demanded that the government apply the relevant laws to all transporters, including Uber drivers.

Representatives told a press conference on Tuesday that taxi drivers protesting in the street despite the cold weather want the government to make clear that Hungarian laws apply to everyone.

The Budapest Chamber of Industry and Commerce, the National Association of Transport Businesses and the National Taxi Association have asked the prime minister to appoint an authority to coordinate activities and issue fines for abusers. Around 500 drivers working for ride-hailing service Uber lack the licences and equipment necessary to carry out such activities, and can thereby defraud the treasury, they said. Online access to Uber should suspended until they comply with regulations, they added.

Head of the National Taxi Organisation, Zoltan Metal, said Uber may have a price advantage but it is not legal. The national transport authority stated last year that the activities linked to Uber are unlawful in Hungary, he added. Uber does not have registered employees and the drivers lack relevant tax numbers. According to certain estimates, Uber deprives the treasury of 3 billion forints (EUR 9.52m) each year, he said.

Head of the transport department at the Budapest Chamber of Industry and Commerce, Zoltan Dudas, called Uber “dangerous” because it highlights how income can be made tax-free. He added that once Uber destroys Hungarian businesses services would become much dearer.

Taxi company Fotaxi said it would sign the joint statement issued by taxi professional associations and unions. The company expressed hope that its 1,000-plus employees and 1,000 contracted taxi drivers can rely on laws being applied to all.

The deputy state secretary for taxation at the economy ministry said that Uber drivers could expect more roadside checks, and sanctions against violators will increase. Zoltan Pankucsi told a press conference that practically all Uber drivers failed to meet the regulations and the current sanction is up to 2 million forints.

Taxi drivers continued to demonstrate against Uber in Budapest on Tuesday.

The taxi drivers started their demonstration early on Monday, snarling traffic on a section of Bajcsy-Zsilinszky Street, a thoroughfare in the city centre. Demonstrators told police they wished to continue the protest until midnight on Wednesday.

Photo: MTI

Taxi drivers continue anti-Uber demonstration – Photos

Budapest, January 19 (MTI) – Budapest’s taxi drivers have continued their protest against car-dispatcher Uber, blocking traffic at the junction of Andrassy Avenue, Bajcsy-Zsilinszky Road and Jozsef Attila Street in the city centre on Tuesday morning.

The protesters have blocked the site with some 30 taxis, leaving only one lane in each direction for traffic to pass by.

The organisers, who started their demonstration on Monday morning without prior notice, have since filed for a permit. At MTI’s inquiry, the police said that negotiations were under way.

Photo: MTI

Protesting taxi drivers partially release Andrassy, Bajcsy-Zsilinszky – Photos

Budapest, January 18 (MTI) – Taxi drivers demonstrating against car dispatcher Uber in central Budapest have opened a lane in Andrassy Avenue and one in Bajcsy Zsilinszky Road, respectively, on Monday afternoon.

The protesters had completely blocked traffic in both directions of the two major routes earlier on Monday. The Budapest police warned the demonstrators that a complete blockade was illegal, and called on them to free one lane for traffic.

Zsolt Gelencser, representing the taxi drivers, said that the demonstration was planned to go on till 8am on Tuesday. He said earlier that the move was in response to authorities ignoring their approaches for talks earlier in the day. The drivers wanted to know from the transport authority, the economy ministry, the tax office NAV and Uber’s offices when their demands would be met, he said. State secretary at the Development Ministry Janos Fonagy only said that his “heart” was with the taxi drivers, but could do nothing else, Gelencser said.

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Later in the day, Fonagy met representatives of the protesters, and the ministry said in a statement that the government would “continue to do its utmost to ensure the security of passengers and ensure and environment in which taxi drivers can work and make a living”.

The government supports law-abiding and tax-paying taxi drivers, the statement added.

Meanwhile, taxi trade union MTSZ said in a statement that Uber’s operations were not in line with legal regulations. According to the statement, while taxis were required to meet stringent technical requirements, “Uber’s cars are not checked and nobody is interested in their technical condition”. They also said that whereas obtaining a taxi licence required considerable investment, starting an Uber business involved no more than a “passing idea”. The statement also pointed out that taxi drivers had a mandatory tariff system, which Uber did not, and could offer lower fares.

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The demonstration started on Monday morning with 100-120 taxis that blocked several lanes at the Bajcsy-Jozsef Attila-Andrassy junction, but left one lane free for traffic to pass at the time.

Signs on taxi windshields showed “Uber” crossed out, “No thanks!” and “Ban Uber!”

One of the taxi drivers told MTI’s correspondent that telecom service providers should remove the Uber app from their web shops, otherwise they would continue to demonstrate. “We’re prepared to be here for several days.”

The taxi drivers said their action is not politically motivated.

Several taxi drivers drove their cars to the City Hall at 11am to present a petition and they held talks with Mayor Istvan Tarlos, but only received support “in principle,” they told reporters after the meeting. In a statement released after the meeting, Tarlos said “tax-paying Hungarian taxi drivers who follow the rules” could continue to count on the capital’s support in the Uber matter. “Uber drivers do not comply with the capital’s tax decree,” he added. “The goal of the capital, with the cooperation of the central government, is to ensure legality; that is, everybody’s compliance with the taxi decree,” he said, adding, however, that the city has neither the “official means” nor the “physical possibility” to prohibit or shut down Uber.

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Uber said the demonstration has proven the need for modern passenger transport regulations that take new technologies into account. Talks with officials about the introduction of such regulations are ongoing, the company said.

Government office chief Janos Lazar said the cabinet would discuss the taxi drivers’ case at its meeting on Wednesday. He said all parties would be consulted.

There are about 1,200 Uber drivers in Budapest and the service has about 80,000 users, Uber said last week.

Photo: MTI

Budapest taxi drivers stage demonstration against Uber

Budapest, January 18 (MTI) – About 100-120 taxi drivers began an unannounced demonstration in protest against car dispatcher Uber in central Budapest on Monday morning.

Taxi drivers lined up their cars at the junction of Bajcsy-Zsilinszky and Jozsef Attila streets and Andrassy Avenue, all major thoroughfares, Budapest police said on its website.

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Lanes reserved for buses are blocked, police said, adding they were keeping one lane in both directions free.

Bus services number 9 and 105 are running with short delays, the Budapest transport centre (BKK) said.

Signs on taxi windshields show “Uber” crossed out and “No thanks!”

taxi demonstration2

One of the taxi drivers told MTI’s correspondent that telecom service providers should remove the Uber app from their web shops, otherwise they would continue to demonstrate. “We’re prepared to be here for several days.”

Laszlo Pusztai, representing one of the taxi companies, said that at the request of the police they would not block lanes elsewhere in the capital. He added that the drivers would definitely continue the blockade until 11am, before making their way to City Hall nearby to hand over a petition.

Photos: MTI

Taxi drivers protest against illegal transport services

Budapest, June 16 (MTI) – Taxi drivers held a demonstration in Budapest to demand government action against illegal transport service companies, on Tuesday.

Related article:
Tax authority passengers fined Uber drivers

The protesters, who arrived in an estimated 300 cars, blocked a street section near Parliament and called on the government to pass legislation to “complete the legal background” to taxi services.

State secretary Janos Fonagy, who took over a petition from the protesters, said that the government would discuss a “taxi decree” at its session on Wednesday. He also voiced the government’s support for law-abiding taxi drivers.

In their petition, the taxi drivers said that unlicenced service providers undermined their legal business and called on the government to apply “full rigor of the law” against drivers carrying passengers without a permit.

Photo: MTI

Taxi drivers happy Uber getting tax probe

taxi drivers budapest

Budapest (MTI) – The taxi drivers’ union welcomed that the tax office had launched an investigation into the ridesharing company Uber for providing taxi services without a licence.

Zoltan Metal, the head of the National Association of Taxi Drivers (OTSZ), told public news channel M1 on Saturday that Uber is “not helping” the taxi driver profession, passenger services or Hungary’s reputation. Uber drivers are not registered, they do not have sufficient qualifications, taxi metres, tax numbers or vacant signs, he said.

The Economy Ministry told MTI on Thursday that the tax office is investigating Uber.

Photo: www.fotaxi.hu

Economy ministry signs agreement with taxi companies, unions on Uber app

taxi drivers budapest

Budapest (MTI) – As the Uber app which lets users get a taxi, private car or rideshare from their mobile phone is getting increasingly popular in Hungary, and rules are needed to ensure equal conditions for the people providing the service, as well as the protection of domestic taxi companies and users, the economy ministry said on Monday.

Related article:
Uber – The Community Taxi Service in Hungary

With these goals in mind, the ministry’s state secretary for regulation met representatives of unions and taxi companies. Bela Glattfelder and the other participants agreed that Uber should not be allowed to gain a competitive advantage against other taxi operators which operate fairly and follow the related legal requirements.

Union representatives objected to the idea that people providing services via Uber may not comply with the strict rules set down for ordinary taxi services such as providing a bill, insurance and submitting themselves to rigorous checks by the authorities.

The participants agreed to continue working towards the creation of an appropriate regulatory environment, the ministry said.

The national development ministry said last Monday that it had no objections to Uber if the same legal conditions are met during its operation as those applying to taxis.

According to the ministry, the new service would then only differ from conventional taxis in using a more modern method of finding passengers. At the same time, Uber must not be allowed to gain an advantage in competition by not meeting the legal requirements on passenger services, the statement added.

Uber, which operates in several countries, was launched in Budapest in the first half of November.

Photo: www.fotaxi.hu