You're reading: VAT on tickets for Intercity+ trains to increase price of tickets by 20 percent

The cancelation of a zero rate of value added tax (VAT) for transportation of passengers by Intercity+ high-speed trains will increase the price of tickets for such trains by 20 percent, the coordinator of the transport sector reformation at the coordination center on the introduction of economic reforms Oleksandr Kava has said.

“I think that the VAT introduction will slightly cut demand on
Intercity+ trains, and the decline will be small,” he told
Interfax-Ukraine.

The expert said that along with the general rise in the prices of
goods and services in the country the increase in the prices of tickets
for Intercity+ high-speed trains will not be very evident for
passengers, especially for the passengers who use these trains.

As reported, on July 31, 2014, the Ukrainian parliament passed on the
law on amendments to the Tax Code of Ukraine and some other Ukrainian
laws, which foresees the cancelation of a zero VAT rate for Intercity+
trains.