Montenegro’s taxi union warned that the government’s Euro model planned for January 2027 could sharply raise taxi fares as fuel and other costs climb. That could reduce customer numbers and push more operators into the shadow economy, according to Borislav Pavlović, president of the Professional Union of Taxi Drivers of Montenegro, which represents taxi operators.
The government has announced an increase in minimum net wages to 1,000, 1,250 and 1,400 euros, depending on the education required for a job. The union has not calculated the model’s financial impact on taxi businesses. Its assessment is based on media coverage and increases in fuel prices and other living costs; Pavlović said the union does not have expertise in economics or finance.
Taxi fares have remained unchanged for seven years, while operating costs have risen by more than 50% over the same period, according to the union president. He said prices “should have been adjusted by now”. Further cost increases could threaten registered operators that already struggle to meet their obligations, while a fare rise could drive customers away.
Costs and earnings
There is no single figure for a taxi driver’s earnings after fuel, vehicle maintenance, taxes and other obligations because income varies substantially by city, according to Pavlović. Drivers in tourist and administrative centres have more opportunities to earn than those in smaller communities, but he said their position was also unsatisfactory. A registered driver who follows the rules “earns on the edge of profitability and struggles to support a family,” he said.
Bar and Kotor offer more earning opportunities because of cruise ship traffic, while Tivat and Zeta benefit from airports, in the union president’s assessment. He also cited Budva as a tourist centre and Podgorica as the country’s administrative centre, where a large share of the population lives. Those differences make a national average for earnings difficult to establish.
The difficulty of supporting a family through registered taxi work is one factor behind the rapid growth of unlicensed activity, according to Pavlović. He warned that higher costs linked to the Euro model could further encourage operators to move into the shadow economy, particularly given what he described as existing problems with inspections. Without stronger action against illegal transport and more equal business conditions, further cost increases would make it harder for registered operators to survive.
The union was not involved in the government’s discussions on the Euro model. “Our representatives have not been included in any discussions with the government, including about the Euro model,” Pavlović said. Its only cooperation with the government is through the Directorate for Road Transport at the Ministry of Transport; he thanked the directorate’s representatives for their communication to date.
Inspections and local rules
Municipal inspection bodies and the offices responsible for bringing local decisions into line with current law are the main problems facing taxi entrepreneurs, in Pavlović’s assessment. He said municipal inspectors were not enforcing existing laws or local decisions, encouraging illegal operators. Registered taxi businesses pay their obligations to the state and local governments, while unlicensed carriers operate without effective oversight, he said.
For registered drivers, a delay of just one day in paying a taxi-stand fee or local tax can lead to enforced collection and late-payment interest, according to the union president. He said that contrast leaves businesses that comply with the rules at a disadvantage. Weak oversight of unlicensed transport also adds to the pressure on operators whose costs have risen without a change in fares.
Amendments to the Road Transport Law were adopted in April, and the deadline for aligning local decisions with the new rules has since passed. The union has no information that any local administration has begun preparing the required decisions, Pavlović said. Adopting them requires a public consultation, usually lasting 15 to 20 days, followed by a vote in the local assembly.
