Minister Proposes Sweeping Changes to Iceland’s Taxi Market

2026-01-30 - 11:38

Iceland’s taxi industry is set for a major overhaul, with new regulations aiming to resolve ongoing chaos and improve safety. Eyjólfur Ármannsson, the Minister of Infrastructure, announced a draft proposal yesterday outlining changes that will address key issues within the sector. The proposed regulations, now available for public consultation, include a requirement for taxis to display distinct licence plates, different from regular vehicles. What's the Story? Iceland’s Infrastructure Minister Eyjólfur Ármannsson has proposed new regulations for the taxi industry. Taxis will be required to display special licence plates different from regular cars. Stricter supervision of the taxi sector will be enforced by the Icelandic Transport Authority. Taxi stands must create and publish their own rules of conduct. All taxi drivers licensed after the 2023 legislative changes must pass a new exam to renew their licences. The proposed changes aim to improve safety, transparency, and professionalism in the taxi market. Hopp Taxi in Reykjavík. The rules will also enforce stricter supervision by the Icelandic Transport Authority, ensure taxi stands establish and publish their own codes of conduct, and introduce clearer price lists within vehicles. Mandatory parking and number restrictions were abolished in 2023, when, as the minister points out, the country lacked a proper legal framework to ensure oversight. This gap has led to serious consequences, including disputes between passengers and drivers, violence, and even criminal convictions. To combat these issues, the minister has proposed reinstating mandatory stopovers, although this bill has yet to be passed. Furthermore, all future taxi exams will be conducted without external assistance, and drivers licensed after the 2023 legislative amendments will need to retake their exams in order to renew their licences. The minister believes that the changes will establish a professional and transparent taxi market, offering passengers a safe and reliable service.