Electronic Articles

Operating in uncompetitive environment is very common for businesses in post-communist countries. Often such environment is encouraged by governments through imposition of tariffs, quotas or licenses. In this sense Georgia is not an exception. It is really rare to find any business that is operating in truly competitive and free environment.

However there is certain business activity that is truly free in Georgia. Paradoxically this is taxi service that became a “booming” business recently. Due to it’s low per kilometer cost and large supply taxi became primary mean of transportation for many people.

To become a taxi driver one does not need any license, permission or even registration. All that is needed is a car and driving license. Virtually anyone can run taxi business and earn income. This makes price manipulations almost impossible.

It is noteworthy that income from this operation is not taxed, since it is not recorded anywhere. Generally in most of the cases taxi payments are agreed between taxi driver and a client on bargaining basis and taxes are not payed even nominally.