Question 1
Are you familiar with the plea by passenger organization Rover and NS for the abolition of
VAT on public transport services?
Yes.
Question 2
Do you share the view that abolishing VAT on public transport services would be a useful
measure to promote the use of clean mobility and to win back the traveller to
win back public transport now that the corona measures have been scaled down?
Applying a reduced or zero rate requires careful consideration, where the
policy goal must be sharply defined and it must be considered whether a tax subsidy is the
most appropriate instrument. Abolishing VAT on public transport would lead to a loss of
tax revenue (see question 6), which would then have to be covered.
The Knowledge Institute for Mobility Policy (KIM) is currently analyzing which instruments can be used to encourage a switch from road to rail.
can be used to promote the transfer of passengers from car to public transport.
public transport. These instruments not only have an effect on the extent of car and public transport use, but also on, for example, accessibility for different groups and on environmental and sustainability goals.
sustainability objectives. The report is scheduled to be sent to the House of Representatives in the autumn.
Later this year the European Commission will present proposals on VAT on (international) train tickets.
train tickets. The Netherlands is awaiting these proposals and as usual will assess them via the
BNC document (Assessment of New Commission Proposals). This assessment will take into account the expected
expected impact on the desired level playing field and the financial consequences. The
BNC document will naturally be discussed with the Lower House. The insights into the financial
effects for the traveller, there will also be insight into the threshold-lowering effect for the traveller. At
Finally, a motion was submitted by Ms. Inge van Dijk and Mr. Van der Molen.1 It requests
This motion requests the government, in favor of increasing the number of travelers in public
public transport and to reduce travel costs, the government is requested to investigate whether the reduced VAT rate on public
public transport tickets can be temporarily brought to 0%. This year, the reduced
VAT rate in a general sense is being evaluated by the Ministry of Finance. These insights
will be taken into account when making policy choices on VAT, and it is reasonable to wait for that
evaluation.
Question 3
Do you share the view that this would also be a useful measure to compensate consumers
for the increased energy prices and skyrocketing inflation?
With the package of purchasing power measures, the Cabinet wants to help people who have difficulty
difficult to absorb cost increases in the short term. In the case of public transport
such cost increases are not an issue at this time2. These prices will be indexed for next year.
These prices will be indexed again for next year. The government has therefore not opted for a temporary VAT reduction in public transport.
chosen.
Question 4
Do you share the view that eliminating VAT on public transport would be an effective way
be an effective way to combat transport poverty?
In addition to the supply of public transport, the price of public transport is one of the determining factors for the extent to which
in which people use public transport. Price reduction in public transport helps to combat
of transport poverty. In the fall, the evaluation and research results of the Ministry of
of Finance and the KIM respectively will be available in the autumn. In addition, the report of PBL
report on the accessibility of jobs and facilities for different population groups and areas will also be available.
and areas. With the information from these studies, this question can be better answered.
Question 5
Are you willing to consider abolishing VAT on public transport?
See answer to question 2.
Question 6
What would it cost to completely abolish VAT on public transportation?
The full abolition of VAT on public transport is partly dependent on the post-corona
recovery in the number of public transport passengers and would cost between 300 and 400 million euros. This includes
cab transport.
Question 7
What would it cost to return VAT on public transport to the “old” rate of
six percent?
An introduction of an additional rate (in this case 6%) is not IT-technically possible for the Tax Authorities
possible earlier than 2026. Preparations for a new system are underway and that is the beginning
of a long-term process. A reduction to 6% is therefore not possible in the coming years.
The costs of such a reduction would be a third of the amounts mentioned in
answer 6 (between 100 and 133 million euros).
Source: rijksoverheid.nl
