The adoption of the law regarding taxi drivers is expected to bring forth numerous challenges and spark protests within the industry. Garnik Danielyan, the leader of the ACH “Armenia” faction, made a statement during the taxi drivers’ demonstration near the presidential residence on November 27. He expressed concerns that this law would negatively impact Armenia’s presence in the EEU market for taxi services and cause significant economic consequences. According to Danielyan, the government should not impose a mandatory 20% profit requirement on taxi drivers, as it is unfair and arbitrary.

Danielyan further criticized the decision-making process, questioning whose interests are being protected by this law. He argued that even if the law was signed by the President of the Republic of Armenia, Vahagn Khachatryan, it would still ultimately be influenced by Prime Minister Nikol Pashinyan. However, Danielyan emphasized the importance of the President’s institution functioning effectively.

It is worth noting that starting from December 1, additional amendments to the Tax Code of the Republic of Armenia will be implemented. These changes will specifically regulate the taxation and collection of Value Added Tax (VAT) and income tax for taxi services. Under the new law, taxi drivers will be required to maintain a minimum 20% profit, from which they will have to pay 18% VAT and income tax.

The parliament passed these amendments on November 16, leading to discontent among taxi drivers. They feel burdened by the introduction of additional taxes, which are further compounded by the necessity of selling their vehicles at inflated prices. The actions taken by taxi drivers during their protests reflect their dissatisfaction with the new law and its implications.