Higher VAT rate and indexation makes Dutch taxis 5,75 percent more expensive

Higher VAT rate and indexation makes Dutch taxis 5,75 percent more expensive

Taxifares in The Netherlands will be considerably higher from January 1, 2019. The increase of 5,75 percent is partly due to the upcoming VAT increase on passenger transport from 6 to 9 percent and the annual price indexation (2017: +0,4%, 2018: +1,2%). Even on the base of a booming economy, taxi fares would go up by 3 percent – in itself a larger increase than in previous years. In the deregulated Dutch taxi market taxi companies can themselves decide how high the new fares will be, as long as they stick to or remain below the maximum fare set by the government. Experience from previous years shows that most taxi companies stay close to the maximum rate.

In 2019, both the fixed fares, the amounts per kilometre and the amounts per minute may be increased by 5.75 percent. The maximum price for the starting tariff will go from € 3.02 to € 3.19 in 2019. The maximum kilometre rate increases from € 2.22 to € 2.35. The amount per minute increases by € 0.02 euro from € 0,37 with a maximum of € 0.39. A spokesman for the Ministry of Infrastructure and Water Management stated coolly that “when the economy is booming, prices go up accordingly. People will also have more money in their pockets to pay for a taxi.”

This also applies to the waiting rate that may be charged before the start of a journey, provided that this has been agreed with the consumer. The maximum rates do not apply to contract transport and taxi transport that is provided at the agreed fixed price.

When transported in vehicles for five to eight people, the increase is as follows Fixed amount: € 6.13 to € 6.49. The amount per kilometre changes from € 2.79 to € 2.95 and the amount per minute from € 0.42 to € 0.44. There is also the maximum rate which the operator can charge for an hourly waiting period, providing the customer has agreed to this. That amount ranges from € 41.55 to € 43.94.

Apart from the rates, other changes are afoot. When the Passenger Transport Act was updated, from 2011 taxi operators were obliged to ensure that customers had an independent opportunity to complain – apart from the operator who had carried them. On their receipts and websites taxi operators had to refer complaining customers to the national institution: ‘TaxiKlacht’/Taxi Complaint. This hotline has been handling an average of 800 complaints annually since 2011. But as apps have made it so much easier to complain directly to the operator, the government sees no further need for an annual subsidy to this hotline. Taxi association KNV Taxi fears that will mean the end to this national institution. The legislation will also be changed, stipulation that receipts need to carry the operators name and details on it.

  • Higher VAT rate and indexation makes Dutch taxis 5,75 percent more expensive.

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