The House transport committee on Thursday examined two draft bills aiming to toughen penalties for illegal passenger transport in Cyprus, as concerns grow over the rise of unlicensed taxi services.

The proposals, submitted by Dipa MP Marinos Mousiouttas, focus on increasing fines for vehicles operating without number plates and for the use of so-called “pirate taxis” – cars offering transport services without a proper taxi licence.

Under current law, the out-of-court fine for operating a vehicle for hire without a taxi road-use licence is set at €85.

Mousiouttas’ bills propose raising this amount significantly to act as a deterrent, amid warnings that the lenient penalties are failing to stop illegal operators.

After consultation with relevant government departments, the committee suggested lowering one of the proposed fine increases, for vehicles without number plates, from €500 to €400.

The adjustment was made to keep the measure proportionate, aligning with the principle of fairness in enforcement.

A separate clause in the bills, which suggested imposing a €100 fine on passengers using unlicensed taxis, is now under review.

Mousiouttas called for this provision to be removed, citing legal and practical difficulties in enforcing penalties on passengers.

Despite this, the committee agreed that the proposed €300 fine for drivers of unlicensed taxis should remain unchanged. Both police and government departments believe the penalty is proportionate and strong enough to discourage violations.

Currently, a separate administrative fine of €750 is already in place for those operating illegal taxi services. This amount doubles if not paid promptly.

However, government officials confirmed that the law does not currently allow for suspension or removal of the driver’s professional licence in such cases.

This gap in enforcement prompted Disy MP Demetris Demetriou to propose stricter sanctions for repeat offenders, including the suspension of the driver’s professional licence and the addition of penalty points to their record.

He argued that this would further strengthen the legal framework and deter ongoing illegal activity in the transport sector.

The proposed reforms, if passed, are expected to shape a new regulatory landscape, with direct implications for both professional drivers and passengers across Cyprus. Final decisions on the draft bills will be made in the coming weeks.