Discounts in public transport of 50% will help to reduce budgetary compensations by one third

19/1/2022Press releases

The government coalition agreed on a 50% discount in regional and long-distance trains and buses for children, students and passengers aged 65 years and over. The discount will apply from April.

Discounts in public transport of 50% will help to reduce budgetary compensations by one third

“Half the price for fares is still attractive for people to use public transport while also providing savings to the state budget. It is a responsible discount that saves money, is socially sensitive, does not prevent people from travelling and discourages carriers from unfair practices”, said the Minister of Transport Martin Kupka.

Changing the discount from 75% to 50% will reduce the state budget deficit by CZK 1.9 billion per year depending on the number of passengers in public transport. Since flat-rate discounts were introduced in September 2018, the state has reimbursed carries over CZK 14 billion. New discount fare will cost the state budget up to CZK 3.9 billion.

“We need to react to the current economic situation, when we need to tame the huge state debt, moderate inflation and reduce the state’s operational expenses. The previous government expected to spend only 2.5 billion crowns on discounts, which would not be enough to cover even the proposed 50% discount. It is a shame that its representatives did not confess they would have to lower the discount or increase our common debt”, added the minister.

Together with changing the discount, the government will also favour families with children. Conditions for travelling with children in trains and buses will be unified. Discount will also extend to passengers with 3rd degree of disability. “We want to extend the discount to passengers with 3rd degree of disability, who have not yet been eligible for discount. We are reinforcing a direct help to those who need it”, explained Mr Kupka.

Discounts in public transport will continue to apply to children up to 6 years of age, students aged 6 to 18 years and then students up to their 26th birthday. Passengers aged 65 years and over will also be eligible for the discount. For people with reduced mobility (holders of ZTP and ZTP/P certificate), the current 75% discount remains unchanged and guaranteed by the act on provision of benefits for disabled persons; the state pays the fare for the person accompanying holder of ZTP/P certificate.

Overview:

From 1 April 2022, the current discount in trains and buses will be reduced from 75% to 50%.
A responsible discount that saves money, is socially sensitive and does not prevent people from travelling. It represents a support of high standard in public transport.
The change will discourage carriers from unfair practices, such as selling tickets to themselves.
We are unifying conditions for travelling with little children in train and buses, which will be an added benefit to families.
We extend the discount to passengers with 3rd degree of disability, who have not yet been eligible. It is a directed aid compared to the flat-rate discounts.
Discounts will apply to children, students and passengers aged 65 years and over. The 75% discount will remain unchanged for holders of a disability certificate (ZTP and ZTP/P).
The 50% discount is still a considerable saving for passengers and provides state support to the public transport while also saving the state budget.
An estimated CZK 1.88 will reduce the state budget expenses billion per year. Introduction of changed discounts will cost up to CZK 3.9 billion.
The reason to preserve the discount is to provide a much-needed support to the public transport affected by COVID restrictions. We need to get to the pre-COVID levels.
The change is necessary to tame the state debt, moderate inflation and reduce the state’s operational cost in this and upcoming years.
The previous government did not consider a full reimbursement for discounts. Instead of ca. CZK 6 billion, it allocated “only” CZK 2.5 billion for this year accounting for a 32% discount.
A complete abolition of discounts would also mean a financial burden for regions, which would then have to reimburse the discounts from their own budgets.