The value of application transport services will reach PLN 4.2 billion in 2021 and is significantly higher than the value of traditional transport services estimated at PLN 3.3 billion, according to the report of the TOR Economic Advisors Team.
“Mobile applications have recently started to replace traditional means of communication on the passenger-carrier line, therefore the forecast for 2021 of the value of application transport services is PLN 4.2 billion and is significantly higher than the value of traditional transport services – PLN 3.3 billion. These will grow in the coming years as a result of a still lower number of taxi journeys per average Pole than in Western European countries and the interest of intermediary platforms in smaller urban centers. The largest markets recorded an increase in the number of licenses, but above all, an increase in the number of active taxis by 44 should be noted. All this will increase the state budget revenues from income taxes and value added tax (VAT) “- according to the report entitled “Changes in passenger transport by taxi. Effects of the amendment to the Road Transport Act”.
The projected value of services in the traditional transport model in 2025 will amount to almost PLN 3.7 billion, and in the application transport model PLN 4.7 billion (+ 13%).
The report summarizes the changes in the passenger transport market, presenting its functioning before and after the amendment to the Road Transport Act and the activities of brokerage platforms in Poland. New regulations and signals coming from the market carry a risk that some market participants avoid adjusting to the new rules. An example of such activities may be the separation of application brokerage services between a company registered in Poland, licensed for brokerage in passenger transport, and a foreign branch of the company that settles the transaction with the carrier. As a consequence, it makes it possible to circumvent corporate taxation (CIT) and reduces VAT revenues when providing intermediation services.
As indicated, the projected tax revenues from application brokerage services will amount to nearly PLN 98 million in 2021.
Meanwhile, each 10% of services provided by an application agency that fails to comply with the new regulations will result in losses for the state budget of PLN 9.8 million. Failure to take appropriate action with the growing value of the application model services may result in a loss of tax revenues by 2025 with a total value of PLN 52 million.
“Such a state of affairs can no longer be tolerated, given that the reform was intended, inter alia, to level the playing field and increase tax revenues. Circumventing statutory requirements distorts competition on the entire taxi market, as it allows for illegal offers of lower prices. The lack of control activities may lead to a situation in which current and new players will also start to operate, separating the possession of a brokerage license from the settlement of transactions with carriers.This will deepen the tax losses of the state budget – commented the president of the TOR Economic Advisors Team Adrian Furgalski.
From January 2021, the amendment to the Road Transport Act is fully in force, which covers the operation of brokerage platforms.
Source: ZDG TOR and ISBnews
