Tax relief for public transport helps Föli during a difficult economic situation

The Finnish Government has decided to temporarily remove the 10% VAT on public transport between January and April 2023. The four-month period of tax relief is intended to help operators and passengers during a challenging economic situation.

The purchase costs of public transport have increased by more than 10% over the past year. Turku Region Public Transport cannot afford to temporarily reduce ticket prices by the amount of VAT. Föli has therefore proposed to the Turku Region Public Transport Committee that prices be kept at current levels despite the temporary change in the VAT rate. The temporary reduction in VAT will nevertheless benefit customers, as the resulting increase in income will probably prevent permanent price increases that would otherwise happen in 2023.