Zero VAT on Train Tickets – There’s a Dilemma￼
On January 24, the prime minister announced talks with the ministry and expected savings. Government spokesman Piotr Müller was asked about zero VAT.
The increase in the price of train tickets caused a great stir not only among passengers, but also in the political arena. On January 11, PKP Intercity introduced a new price list, which provoked the reaction of the government.
According to the PM, he will demand from the Ministry of Infrastructure decisive saving actions in all PKP companies in order to lead to the lowest ticket prices.
On January 25, government spokesman Piotr Müller was asked about the exact date of Prime Minister Mateusz Morawiecki. Now it’s a matter of verifying what else can be done in this area – said Piotr Müller at a press conference.
“PKP Intercity adjusts ticket prices to the current market situation – growing operating costs, resulting primarily from higher electricity prices and to the price offer of competitors. The revised price list will come into effect on January 11, 2023.
Compared to January 2022, the price of electricity on the Polish Power Exchange increased by as much as 62.18%. This will be directly translated into a significant increase in the charges for active energy forecasted for 2023, which is part of the charges for traction electricity, and as a consequence – an increase in the cost of services provided by PKP Intercity. The government has already provided financial support to PKP on the basis of last year’s regulations. Energy prices soared and if not for the support of several hundred million, these prices could be even higher. The minister declared that if it had not been for government aid, the increases would not have been 14, but more than 50 percent.
The subject of a potential reduction in VAT on train tickets has also returned. The government spokesman was asked whether such actions are planned. There is a limit of zero VAT rates that can be set by each EU country. If it is exceeded, we have to give up other zero rates. This is the dilemma in which area we want to do this, explained Piotr Müller.
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