At the beginning of the year, the tax burden on rail tickets fell. The economic stimulus package may soon make it even cheaper. The railway apparently intends to pass the savings on to the customers in full.
DAccording to information from supervisory board circles, Deutsche Bahn also wants to pass on to its customers the “1: 1” reduction in value added tax decided in the latest economic stimulus package. “In long-distance transport, we are checking at full speed how we can ensure implementation in our sales systems,” says a letter from the board of directors to the supervisory board, which the German press agency has received in parts. For local transport, the railway is therefore in talks with other parties involved, i.e. transport associations, other railway operators and the authorities who organize and finance local transport in Germany.
Soon only five percent on tickets
Following the decision of the grand coalition last week to reduce VAT from July 1st until the end of the year, rail board member Ronald Pofalla announced that he would examine “how and in what form we can pass the VAT reduction on to customers”. The reduced rate, which has also applied to train tickets since the beginning of the year, is to drop from seven to five percent.
At the beginning of the year, Deutsche Bahn had already reduced long-distance fares by ten percent. The railway had taken the lower value added tax at that time off one-to-one against the ticket prices.