The government’s handout to public transport, which is suffering from increased costs, seems to cause more trouble than it brings benefits in many places. The VAT discount is fully transferred to the prices only in some municipalities.
The temporary removal of VAT from passenger transport will definitely be transferred to bus ticket prices in only some municipalities. Yle found out about the matter from operators in different parts of the country.
The ten percent value added tax will be removed from public transport for the period between January and April. It is the government’s support measure for the industry – and for passengers.
In Vaasa and Seinäjoki, the discount is transferred directly to the ticket prices. The reduction in public transport in the Jyväskylä region can also be seen in the form of cheaper prices. In Oulu, too, the intention is to transfer the change to prices, but it will probably only be partially successful.
In Tampere, prices will not decrease, but thanks to the VAT sale, the increases will be postponed. In Turku, the increases are now limited to value card trips only.
In Lahti, Hämeenlinna and Kokkola, it is not yet possible to assess what the impact of the change will be.
The benefit flows partially into the implementation of the change
A large part of the operators who answered bring up the fact that the temporary support measure causes a big job when prices have to be adjusted in the systems.
Helsinki Region Transport HSL previously estimated that more than half of the ten million euro reduction will go to the costs that arise when the tax change has to be rolled into, in HSL’s case, up to twenty systems and sales channels. And will restore in time.
Vaasa and Seinäjoki tickets are getting cheaper
In Vaasa and Seinäjoki, the discount is transferred to the ticket price in full.
In Vaasa, the one-way ticket will be 20 cents cheaper, and there will also be a discount on reloadable value cards, for example about 12 cents a trip for an adult.
The change brings additional work, for example, to the driver, who has to handle smaller amounts. It causes buses to be late, believes Hälilä.
He would have preferred to apply the discounts directly to fuel prices; the reduction of value added tax from 24 percent to 14 percent would have been a more significant relief.
In Seinäjoki, the price of a one-way ticket drops by 25 cents, or from 3 euros to around 2.75 euros. The price of the monthly ticket will be reduced from 35 euros to around 32 euros.
– It requires about two hours of administrative work. It can be changed reasonably quickly, unless there are special requirements for reporting from the government.
Also in Härmän Liikente’s scheduled services, the price of tickets will decrease by the amount of the discount, i.e. a euro for the tenth trip.
According to Heinimäki, removing Alvi is a good target. If the discount had come to fuel prices, the change would not have been so transparent to the customer.
– Now the customer can see whether the VAT deduction has gone directly to the customer prices.
In Jyväskylä, it is believed that the discount will increase the use of public transport
The city of Jyväskylä and the municipalities of Laukaa and Muurami buy the regional local transport runs from the operators. According to Ström, the change has no effect on the compensation paid to operators.
– We have made a preliminary budget for next year, and it does not include price increases. If there is a tax reduction, it is supposed to be transferred to customer prices.
For example, a monthly ticket with one zone now costs 54 euros in public transport in the Jyväskylä region. At the beginning of next year, its price would be less than 50 euros thanks to the removal of value added tax.
Ström welcomes the government’s opening of the temporary VAT removal.
– At the national level, we have presented to the decision-makers whether the public transport value-added tax is necessary at all. For example, Sweden does not have it.
Tampere raises prices after the tax sale, Turku partly already during it
In Tampere, the tax relief, when implemented, will not bring cheaper travel tickets, but it will transfer price increases.
The focus of the increases is on one-time and season tickets for the two zones. There are no plans to withdraw mobile one-time tickets or contactless payments, nor for longer trips in 3–6 zones.
The public transport board will make the final decision on increases for different ticket types in November-December.
In Turku, too, it is not possible to calculate prices for January–April. However, Alvi’s temporary removal helps to survive with small price increases.
In Oulu, the sale is only partial, in Kokkola, the decision will be made in December
In Oulu, the intention is to transfer the VAT reduction to the ticket prices, but it is not yet certain whether it will be transferred completely due to the costs incurred.
Also in Kokkola, it is not yet possible to assess whether the discount can be temporarily applied to the ticket prices or whether it will be used to compensate for rising costs.
According to Lehtonen, it is also necessary to find out how the price change can be implemented.
– It would always be easier if we talked about the change of the entire calendar year and not such a change of individual months.
The situation in Lahti and Hämeenlinna is still open
– Such a short-term change may not be transferred to consumer prices as well as if longer-term changes were made with a little more notice.
In Lahti, it is planned to start a zoning reform after the turn of the year, which in practice means changes to the system. According to Särkkäaho, the government’s VAT changes to the system can be challenging to implement because they fall at the same time.
– There is upward pressure on ticket prices because the price of fuel is high. In addition, traveling has waned close to travel during the corona period
Even in Hämeenlinna, the effect of the change on ticket prices is still open. According to Pekola, a 10 percent price reduction is not essential for the buyer of single tickets. Instead, 10 percent is already noticeable in the monthly ticket.