OrdinanceAdministrative Law
Traffic Ordinance [New Version]
פקודת התעבורה [נוסח חדש]
Published: 1961-08-01Consolidated Hebrew text as of 2026-06-14 · Last amended 2026-07-28✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Section C: Licence to Operate a Taxi
Licence to Operate a Taxi§
13a.
(a)No person shall operate a taxi unless he has received a licence to operate a taxi pursuant to the provisions of this Section.
(b)The vehicle licence of a vehicle registered as a taxi shall include the particulars of the owner of the vehicle as well as the particulars of the licence to operate a taxi, including its number, the name of its holder and that holder's identity card number.
(c)The Minister –
(1)shall prescribe provisions regarding the manner of changing the registration of ownership of a vehicle registered as a taxi and the manner of changing the particulars of a licence to operate a taxi registered in the vehicle licence;
(2)may prescribe provisions regarding the manner of recording the particulars of the licence to operate a taxi and additional particulars to be recorded in the vehicle licence of a vehicle registered as a taxi.
Entitlement to Receive a Licence to Operate a Taxi§
14.
A person is entitled to receive a licence to operate a taxi if all of the following conditions are met in respect of him:
(1)he is a resident of Israel;
(2)he has not been convicted of an offence which, in the opinion of the Taxi Committee, by reason of its gravity or circumstances, is such as to preclude the grant of a licence to operate a taxi, or the limitation period applicable to the conviction under the Criminal Information and Rehabilitation of Offenders Law, 5779-2019 has elapsed, and if he is a corporation registered in Israel – the controlling shareholders of the corporation or its managers have not been convicted of such an offence; for this purpose, "control" – as defined in the Securities Law, 5728-1968;
(3)in the opinion of the Taxi Committee, the operation of a taxi by him will not prejudice State security; a decision to refuse to authorise a person to receive a licence on the grounds referred to in this paragraph shall not be made except upon a request by the Israel Police;
(4)he has paid the fee for the grant of a licence to operate a taxi pursuant to section 14e(a).
Taxi Committee§
14a.
(a)The Minister shall publish in a notice in the Reshumot (Official Gazette) a list of persons who may be appointed as members of a Taxi Committee (hereinafter – the members list), and shall appoint a judge proposed by the Minister of Justice to serve as the chairperson of the Committee.
(b)The Taxi Committee shall deliberate in panels of three appointed by the chairperson of the Taxi Committee from the members list; the chairperson of the Taxi Committee or a person appointed by him from the members list shall serve as the chairperson of a panel.
(c)If one of the members of a panel of a Taxi Committee is unable to participate in the continuation of the deliberation at the scheduled time, the chairperson of the Taxi Committee shall appoint another member from the members list, and the deliberation shall continue before the new panel from the stage that the deliberation before the first panel of the Committee had reached.
Arrangements for Submission of Applications§
14b.
(a)An application for the receipt of a licence to operate a taxi shall be submitted to the Traffic Inspector.
(b)The Minister shall prescribe the manners of submitting the application, the time limits for its submission and the documents to be attached in support thereof.
(c)A person applying for a licence to operate a taxi shall pay, for the submission of the application, a fee in an amount to be prescribed by the Minister, with the approval of the Finance Committee of the Knesset.
Issue of a Licence to Operate a Taxi§
14c.
(a)The Traffic Inspector shall transmit to the Taxi Committee the applications submitted to him together with their attachments.
(b)The Taxi Committee shall examine the applications and shall decide whether the conditions set out in paragraphs (1) to (3) of section 14 are met by the applicants for a licence to operate a taxi.
Transfer of a Licence to Operate a Taxi§
14d.
(a)A person who has received a licence to operate a taxi may transfer it to a person in whom the conditions set out in paragraphs (1) to (3) of section 14 are met and who has received a permit pursuant to this section.
(b)A person applying to receive a permit shall submit a written application to the Traffic Inspector, in the manners and with the documents in support thereof as prescribed by the Minister.
(c)The Traffic Inspector shall transmit the application together with its attachments to the Taxi Committee, and the Taxi Committee shall decide on the fitness of the applicant; if the Taxi Committee has decided that the conditions referred to in section 14 are met by the applicant, the Traffic Inspector shall permit the transfer of the licence to operate a taxi to the applicant.
Fees§
14e.
(a)
(1)For the grant of a licence to operate a taxi, the recipient of the licence shall pay a fee in the amount of NIS 205,000 (hereinafter – the regular fee); however, during the years 2001 to 2007, a person who holds a valid licence in Israel to drive a taxi and who has driven a taxi as his principal occupation for a period of at least 5 years preceding the date of submission of the application, of which at least two and a half years were in Israel, shall pay a fee in the amount of NIS 110,000 only; for this purpose, "principal occupation" – actual work in Israel driving a taxi registered in Israel or actual work abroad driving a taxi;
(2)From the year 2000, the Minister may, with the approval of the Finance Committee of the Knesset, prescribe by Order in respect of paragraph (1) a period shorter than 6 years.
(b)On 1 January, 1 April, 1 July and 1 October of each year, commencing in April 1998, the amounts of the fees in subsection (a) shall be updated in accordance with the rate of increase of the index known at that time compared with the index for the month of November 1997; for this purpose, "index" – the Consumer Price Index published by the Central Bureau of Statistics.
(c)From the year 2000, the Minister may, with the approval of the Finance Committee of the Knesset, reduce by Order the amount of the regular fee if he considers that the needs of the economy so justify, and the period of reduction of the amounts of the regular fee, as referred to in subsection (b), shall be shortened accordingly.
(d)The Minister, with the approval of the Finance Committee of the Knesset, shall prescribe a fee for the grant of a permit to transfer a licence to operate a taxi.
Appeal against a Decision of the Taxi Committee§
14f.
(a)An applicant for a licence or a permit may appeal to the Administrative Affairs Court in Jerusalem against a decision of the Taxi Committee concerning the grant of a licence to operate a taxi or a permit to transfer it.
(b)(Repealed).
(c)(Repealed).
(d)(Repealed).
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Contact Us →Section C-1: Licence to Operate a Taxi on a Service Line or a Demand-Responsive Service Line for Taxis and a Service-Ride Licence
Definitions§
14g.
In this Section –
"means of control", "interested party" and "control" – as defined in the Securities Law, 5728-1968;
"the determining date" – (deleted);
"office holder" – as defined in section 1 of the Companies Law, 5759-1999;
"taxi service line" – a fixed taxi transport route with fixed origin and destination stops, in which each passenger in a taxi on the same route pays separately for the ride;
"service-ride licence" – as defined in section 14k;
"service line licence" – as defined in section 14h(a);
"demand-responsive service line licence for taxis" – as defined in section 14h(a2).
Licence to Operate a Taxi Service Line and a Demand-Responsive Service Line for Taxis§
14h.
(a)No person shall operate a taxi service line unless the Traffic Inspector has granted him a licence to do so pursuant to this section, and he operates the service line in accordance with the conditions of the licence and by means of taxis for which a service-ride licence has been granted, only.
(a1)The Traffic Inspector may grant a service line licence in respect of one or more taxi service lines, in accordance with the list published by him pursuant to section 14p.
(a2)No person shall operate a demand-responsive service line for taxis unless the Traffic Inspector has granted him a licence to do so pursuant to this section, and he operates the demand-responsive service line for taxis in accordance with the conditions of the licence and by means of taxis for which a service-ride licence has been granted, only.
(a3)The Traffic Inspector may grant a demand-responsive service line licence for taxis in respect of one or more demand-responsive service lines for taxis, in accordance with the list published as referred to in section 14p1.
(a4)The Traffic Inspector shall not grant a licence that combines a taxi service line and a demand-responsive service line for taxis; however, he may grant to a taxi for which a service-ride licence has been granted both a taxi service line licence and a demand-responsive service line licence for taxis, provided that the taxi does not operate under both licences at the same time.
(b)The Traffic Inspector may grant a service line licence or a demand-responsive service line licence for taxis pursuant to this section to a person in respect of whom all of the following conditions are met:
(1)he is a corporation incorporated in Israel, and at least one of the interested parties in it and its general manager are residents of Israel; such a corporation shall be a separate corporation established for the purpose of operating taxi service lines or for the purpose of operating demand-responsive service lines for taxis;
(1a)he was selected in a competitive, equal and public process, in which, among other considerations, the price offered by the licence applicant and his experience, including the experience of a related corporation of the licence applicant, were taken into account, as well as considerations for promoting competition in the field of public transport; nothing in this paragraph shall derogate from the provisions under the Promotion of Competition and Reduction of Concentration Law, 5774-2013;
(2)(deleted);
(3)he, a controlling shareholder in him or an office holder in him, have not been convicted of an offence which, by reason of its gravity, nature or circumstances, renders it inappropriate to grant the corporation a service line licence or a demand-responsive service line licence for taxis, or an indictment has not been filed against any of them for such an offence in respect of which a final judgment has not yet been given;
(3a)the Traffic Inspector has approved his operating plan, which includes –
(a)details of the number of taxis he intends to operate under the service line licence or the demand-responsive service line licence for taxis and a planned timetable for such operation;
(b)details of the office holders he will employ for the purpose of the operation;
(c)technological means for the purpose of collecting payment for rides in the service taxi, managing the service lines, managing and operating the service lines or the demand-responsive service lines for taxis and providing information to the Traffic Inspector and to the information centre pursuant to section 71b;
(4)(deleted);
(5)an origin stop and a destination stop on the taxi service line for which the service line licence is applied for have been approved for him pursuant to the provisions of the Ordinance, and a suitable place for parking the taxis is available to him near one of those stops; however, in respect of a demand-responsive service line licence for taxis, approval of origin and destination stops pursuant to the Ordinance shall not be required and the taxi parking place shall not be required to be near one of those stops, unless the Inspector has determined otherwise in the licence;
(6)(deleted);
(7)(deleted);
(8)he has deposited with the Traffic Inspector an independent bank guarantee in an amount that shall not at any time be less than NIS 225,000, to secure compliance with the conditions of the service line licence or the demand-responsive service line licence for taxis, and if the number of taxis he intends to operate under the service line licence or the demand-responsive service line licence for taxis exceeds 35 – the amount of the bank guarantee referred to shall be increased by NIS 10,000 for every five additional taxis beyond 35 or part thereof;
(9)he meets the conditions of the competitive process referred to in paragraph (1a) that concern financial soundness.
(c)(Repealed).
(d)(Repealed).
(e)
(1)Notwithstanding the provisions of sections 14, 14b and 14e, a corporation in respect of which the conditions for receiving a service line licence or a demand-responsive service line licence for taxis as referred to in subsection (b) are met is entitled to receive licences to operate a taxi in a number equal to the number of taxis it intends to operate under the service line licence or the demand-responsive service line licence for taxis pursuant to its operating plan, subject to the provisions of paragraph (2);
(2)licences to operate a taxi granted pursuant to paragraph (1) shall be available to the holder of a service line licence or the holder of a demand-responsive service line licence for taxis (in this paragraph – the licence) for the purpose of operating the taxis on the service line or on the demand-responsive service line for taxis, as the case may be, only, for as long as his licence is in force and service-ride licences have been granted in respect of those taxis; such licences may not be transferred, charged (as a security interest) or attached, in any manner whatsoever, except pursuant to a permit from the Traffic Inspector and in accordance with its conditions; such licences shall not be used for the purpose of carrying passengers except on the service line or on the demand-responsive service line for taxis for which they were granted, as the case may be.
14i.§
(Repealed — תיקון מס' 120, 2018)
Details and Conditions in a Service Line Licence and in a Demand-Responsive Service Line Licence for Taxis§
14j.
(a)In a service line licence or in a demand-responsive service line licence for taxis, the Traffic Supervisor shall include, among other things, the following:
(1)in respect of a service line licence – the details of the taxi service line for the operation of which the licence is granted, including the designation of the origin station and destination station approved pursuant to section 14h(b)(5) and the transport route of the taxis operating on it, and in respect of a demand-responsive service line licence for taxis – the area of operation of the demand-responsive service line, including origin stations, destination stations, parking lots and bus stops at which stopping shall be prohibited, if such have been prescribed;
(2)the minimum number of taxis that the corporation holding the licence shall operate on the taxi service line or the demand-responsive service line for taxis in respect of which the licence is granted;
(3)the details of the taxis operating within the framework of the corporation holding the licence on the taxi service line or the demand-responsive service line for taxis in respect of which the licence is granted;
(4)the fare on the taxi service line or the demand-responsive service line for taxis, which shall not exceed the price prescribed pursuant to the Supervision of Commodity and Service Prices Law, 5756-1996, the period of operation of the taxi service line or the demand-responsive service line for taxis and the conditions of operation.
(b)The Traffic Supervisor may prescribe additional conditions in a service line licence or in a demand-responsive service line licence for taxis, including conditions that he considers necessary for the efficient and professional operation of the taxi service line or of the demand-responsive service line for taxis in respect of which the licence is granted, and including, among other things, matters relating to the minimum number of taxis by means of which the service shall be provided and to the number of taxi operating licences in his ownership, and including identifying marks for a taxi as shall be detailed in the conditions of the licence and in the technical specification deposited at the offices of the Traffic Supervisor, and he may, subject to the provisions pursuant to this Ordinance, add conditions to the service line licence or to the demand-responsive service line licence for taxis, remove conditions therefrom or vary them, if he is satisfied that this is required for efficient and professional operation as aforesaid.
Service-Ride Licence§
14k.
(a)A person shall not carry a passenger in a taxi on a taxi service line or on a demand-responsive service line for taxis, in a ride for which each passenger pays separately, unless the Traffic Supervisor has granted a licence therefor, in respect of that taxi, pursuant to this section, and operates it in accordance with the conditions of the licence.
(b)The Traffic Supervisor may grant a service-ride licence only in respect of a taxi included in a service line licence or in a demand-responsive service line licence for taxis.
(c)(Repealed).
Restriction on Transfer of Licences§
14l.
(a)A service line licence and a service-ride licence are not transferable, subject to a charge (security interest) or attachable, except pursuant to a permit from the Traffic Supervisor and in accordance with its conditions.
(b)A controlling shareholder in a corporation to which a service line licence or a demand-responsive service line licence for taxis has been granted shall not transfer control of that corporation to another, except pursuant to a permit as referred to in subsection (a).
(c)In granting a permit pursuant to this section, the Traffic Supervisor shall take into account considerations of promoting competition.
Revocation of Licences and Forfeiture of Guarantees§
14m.
(a)The Traffic Supervisor may, at any time, revoke a service line licence, a demand-responsive service line licence for taxis or a service-ride licence, restrict it, suspend it or forfeit the bank guarantee that was deposited, in whole or in part, after having given the licence holder an opportunity to state his arguments, provided that one of the following applies:
(1)the licence was granted on the basis of false or misleading information;
(2)a condition of the conditions for granting the licence has ceased to be fulfilled;
(3)the licence holder has breached a material condition of the conditions of the licence;
(4)the licence holder has breached a duty or prohibition imposed on him as a holder of a service line licence, as a holder of a demand-responsive service line licence for taxis or as a holder of a service-ride licence, as the case may be, pursuant to this Ordinance;
(5)the licence holder did not commence operating the taxi service line or the demand-responsive service line for taxis on the date prescribed therefor in his licence, or ceased to operate it without prior approval therefor from the Traffic Supervisor; the provisions of this paragraph shall apply, with the necessary modifications, also to a winner of a competitive procedure pursuant to section 14h(b)(1a);
(6)a winding-up order, an interim winding-up order, a receivership order, an assets receivership order or a stay of proceedings order has been made in respect of the licence holder pursuant to any law.
(b)(Repealed).
(c)(Repealed).
Update of Guarantee Amounts§
14n.
(a)The amounts of the bank guarantee specified in section 14h(b)(8) shall be updated on 1 January of each year, according to the rate of increase of the index published in October of the year preceding that date compared with the index published in October of the year before it, and shall be rounded to the nearest ten new shekels, and in respect of the first update date – compared with the index that was known on the 16th of Shevat 5778 (1 February 2018); for this purpose, "index" means the consumer price index published by the Central Bureau of Statistics.
(b)The Director General of the Ministry of Transport and Road Safety shall publish the amounts of the bank guarantee as varied pursuant to subsection (a), in a notice in Reshumot (Official Gazette) and on the website of the Ministry.
Validity of a Service Line Licence, a Demand-Responsive Service Line Licence for Taxis and a Service-Ride Licence§
14o.
The validity of a service line licence, a demand-responsive service line licence for taxis and a service-ride licence shall be until 31 December of the year in which they were granted, and they may be renewed, upon application by the licence holder, for additional periods of one year each, provided that the conditions for granting the said licences pursuant to this Section are fulfilled, provided that a service line licence or a demand-responsive service line licence for taxis shall not be renewed except until the end of the period prescribed in respect of the service line or the demand-responsive service line for taxis in the competitive procedure pursuant to section 14h(b)(1a).
Publication of Lists of Taxi Service Lines and Restriction on the Number of Licences§
14p.
(a)The Traffic Supervisor shall publish on the website of the Ministry of Transport and Road Safety the list of taxi service lines in respect of which service line licences shall be granted pursuant to this Section (in this Section – the list), including service lines in respect of which a single service line licence shall be granted, to the extent that one is to be granted; the Traffic Supervisor may update the list from time to time, provided that one year has elapsed since the date of its last update.
(b)In determining the initial list, the Traffic Supervisor shall take into account considerations of promoting competition in the sector, including prevention of concentration and restrictions on the holding of means of control in the sector, and shall also consider, among other things, the following:
(1)an estimate of the quantity of taxis required on the taxi service line;
(2)(Repealed);
(3)maintaining the regular flow of vehicles on the taxi service lines;
(4)the degree of impact on public transport operated on taxi service lines or in proximity thereto;
(5)the need to provide service by means of taxi service lines in certain areas, having regard to public needs, to alternative public transport means in those areas and to service lines that were operated pursuant to a licence granted in accordance with this Section.
(b1)(Repealed).
(b1)(Repealed).
(c)(Repealed).
(d)(Repealed).
(e)(Repealed).
Publication of Areas of Operation of Demand-Responsive Service Lines for Taxis§
14p1.
The Traffic Supervisor shall publish on the website of the Ministry of Transport and Road Safety the details of the areas of operation of the demand-responsive service lines for taxis in respect of which demand-responsive service line licences for taxis shall be granted pursuant to this Section; the Traffic Supervisor may update the said publication from time to time, provided that one year has elapsed since the date of the last update.
14q.§
(Repealed — תיקון מס' 120, 2018)
14q1.§
(Repealed — תיקון מס' 120, 2018)
Regulations in Respect of Licences§
14r.
The Minister shall prescribe provisions in respect of the following matters:
(1)the manner of submitting an application for a service line licence, for a demand-responsive service line licence for taxis and for a service-ride licence and for their renewal, pursuant to this Section, the dates for submitting them, the details to be included in them and the documents to be attached to them;
(1a)information and data that a holder of a service line licence or a holder of a demand-responsive service line licence for taxis shall provide to the Traffic Supervisor in respect of the operation of the service line or the demand-responsive service line for taxis by him and in respect of the number of passengers on those lines, the means of payment by which passengers paid for the ride and the ride arrangement used for that purpose, as well as the date and manner in which such information and data shall be provided;
(2)(Repealed);
(3)the form of the bank guarantee to be deposited pursuant to section 14h(b)(8), the dates for its renewal and the manner of its forfeiture.
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