Russian taxi companies are appealing to the government for state support, warning of potential industry collapse, increased accidents, and rising fares. The industry faces significant financial strain due to rising car prices, high leasing rates, and a burdensome VAT calculation procedure.

Taxi companies argue that the current VAT system disproportionately affects their profitability. They are requesting a 50% reduction in VAT, similar to what was implemented for the catering sector, to prevent bankruptcies and a shift towards unregistered operations. Ruslan Satretdinov, head of Rhythm taxi company, emphasizes that the introduction of VAT has significantly impacted profitability in an already challenging market.

The appeal, sent to the Ministry of Economic Development and the Ministry of Finance by the Public Council for the Development of Taxis, highlights the risk of losing the legal passenger taxi segment. Without targeted support measures, the industry could fragment into smaller, unregulated firms, leading to decreased safety and quality of transportation. According to Avenue Group taxi company, auto enterprises with more than 50 cars and revenues exceeding 60 million rubles per year are in a particularly precarious position.

The growth of the actual tax burden can reach 30–40% of net profit, causing a sharp decline in profitability. Omar Bagamaev, CEO of the taxi company, claims that this situation is primarily due to VAT. A shift towards unregistered operations would also reduce tax revenue for all levels of government.

While the law theoretically allows deducting part of the input VAT from expense items like fuel, auto parts, and leasing, this is only feasible for traditional taxi companies with their own fleets and employed drivers. The current model, where companies rent cars to drivers registered as individual entrepreneurs or self-employed, does not allow for input VAT deduction. Taxi Maxim notes that such traditional companies are virtually nonexistent in Russia.

Taxi companies insist that state support is crucial because they cannot directly influence pricing, as tariffs are set by taxi ordering services. They believe the situation is even more critical than for the catering sector, where businesses can adjust prices based on costs. Without assistance, companies may be forced to raise fares, reducing taxi accessibility for passengers.