Will taxi and delivery prices increase after the OLX tax law — what will happen to service prices
After the Verkhovna Rada adopted the law on taxation of income received through digital platforms, concerns arose that some service providers might try to compensate for the tax burden by raising prices for consumers.
This primarily concerns sectors operating through digital platforms, including taxi services, delivery, housing rentals, and other online services.
The relevant parliamentary committee believes there is no basis to talk about automatic price increases due to the new law.
What prices depend on
According to committee representatives, service prices are formed by the market.
If an entrepreneur has the opportunity to raise prices due to increased demand, they do so regardless of tax changes or other factors.
The committee emphasizes that demand and supply remain the main factors influencing the cost of services.
An example was given with the taxi situation
The committee noted that this can be clearly seen in the taxi market.
During heavy snowfalls, bad weather, or significant traffic jams, the cost of rides can increase significantly due to higher demand for services.
Therefore, according to committee representatives, pricing primarily depends on the market situation, not on the new rules for taxing income through digital platforms.
What the law provides
The law on taxation of income received through digital platforms establishes new rules for marketplaces, taxi services, delivery, housing rentals, and other online platforms.
The document provides for the introduction of international standards for automatic exchange of information about income received through digital platforms, as well as new mechanisms for administering such income.
The purpose of the law is to simplify and automate tax procedures, not to create additional burdens for citizens or businesses.
Previously, the committee explained that after the law comes into force, marketplaces, taxi, and delivery services will have to register with the State Tax Service, identify users, withhold taxes, and provide tax authorities with information about received income.
The committee also stated that most citizens who occasionally sell their own items through marketplaces will not feel significant changes, since over 95% of users sell goods worth less than 2,000 euros per year.
Additionally, it was explained that to control the non-taxable limit of 2,000 euros, the State Tax Service will receive information from digital platforms and will be able to compare income data received through different marketplaces.
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