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PKP Intercity – ticket prices go up. Government spokesman Piotr Mueller comments

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Significant increases in rail fares raise doubts. – We are looking for solutions that will reduce prices in this respect, but we expect above all actions from the PKP company – announced on Thursday government spokesman Piotr Mueller. As he said, no decision has yet been made to reduce the VAT rate on railway tickets.

PKP Intercity from 11 January this year. introduced new ticket prices. Base prices for single tickets in Pendolino trains increased by 17.8% on average, 17.4% on EIC trains and 11.8% on average on TLK/IC trains. The increase in ticket prices was justified by the increase in electricity prices.

Government spokesman Piotr Mueller was asked during Thursday’s press conference about the increase in rail ticket prices and whether the government would reduce the VAT rate from 8 to 0 percent. for train tickets.

“We expect, above all, actions from the PKP company”

– We are looking for solutions that will reduce prices in this respect, but we expect, above all, actions from PKP, which will also take management actions to consider how to reasonably steer this pricing policy to take into account the social factor – said Mueller .

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– As for VAT reductions, there are no such decisions yet – he added.

The government spokesman also reminded that in 2022 the government prepared a program to subsidize Polish railways so that “high electricity prices have not had an even more negative impact on fares for long-distance transport.

Read also: Ticket prices are going up. PKP Intercity explains

Zero VAT on train tickets

About the Poland may introduce zero VAT on passenger transportMaciej Sokołowski, TVN24 correspondent in Brussels, informed about train tickets. As he explained, such a solution is allowed by the VAT Directive introduced last year. In Annex III attached to it, we will find a list of goods and services for which it is possible to reduce the tax rate. The fifth point is the transport of people.

So we asked a few days ago Ministry of Financewhether the government intends to introduce zero VAT on domestic train tickets.

“The Ministry of Finance is analyzing various scenarios of tax and non-tax support,” the ministry said in a reply sent to TVN24 Biznes.

A popular carrier

According to the latest available data from the Office of Rail Transport, from January to November 2022, 313.14 million passengers used rail services.

Polregio is a passenger carrier with the largest share in the domestic market. In the January-November period, the company transported 25.55 percent. all passengers. In second place were PKP Intercity and Koleje Mazowieckie, which can boast a result of 17.18 percent. In the last place of the podium were PKP SKM – 12.75 percent.

Main photo source: Shutterstock

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