Croatia to cap taxi prices to protect tourists from overcharging

Croatia is set to implement new regulations aimed at curbing excessive taxi fares, particularly during the peak tourist season. A draft ordinance, which will undergo a two-week public consultation before becoming effective eight days after its publication in the official gazette, will establish maximum permissible prices for taxi services.

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However, complete market freedom has created space for the formation of unrealistically high prices and space for their lack of transparency, especially during the tourist season.

The new rules will cap key elements of taxi pricing, including the starting fare, charges per kilometer, per minute of travel, and waiting times. Tomislav Mihotić, State Secretary at the Ministry of the Sea, Transport, and Infrastructure, explained that while the liberalization of the taxi market in recent years increased availability and lowered prices for many, it also created opportunities for "unrealistically high prices and a lack of transparency," especially during tourist influxes.

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The primary goal of the proposed ordinance is to establish a balance between protecting consumer rights and preserving a functional taxi market.

"The primary goal of the proposed ordinance is to establish a balance between protecting consumer rights and preserving a functional taxi market," Mihotić stated. He emphasized that the regulations do not interfere with market competition or set fixed prices but rather act as a safeguard against exploitation and fraud. Notably, the new rules will prohibit additional charges for booking, digital platforms, or entering the vehicle.

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Thus, the new ordinance does not prescribe a minimum price.

Transparency is a key focus, with a requirement for taxis to display the maximum tariff and an estimated fare for a five-kilometer or 15-minute ride on the non-transparent part of their side doors. Vehicles operating exclusively through electronic applications will be exempt from displaying these price signs, provided the user can see the final price and route on their device beforehand. However, these app-based services must still display a notice prohibiting direct bookings with drivers, aiming to combat illegal transportation services. The ordinance also precisely defines and distinguishes between driving and waiting times, addressing past manipulation of charges.

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This approach is directly aimed at the long-standing problem of damaging the reputation of Croatian tourism due to the charging of multiple increased amounts for taxi services.