NS fears fewer travelers due to higher VAT on tickets

Schiphol Airport station in Amsterdam
A crowded train platform at Schiphol Airport with many headed to Amsterdam on King's Day. 27 April 2018Zack NewmarkNL Times

NS is critical about the increase of the low VAT rate, which also covers train tickets, from 6 to 9 percent. According to the rail company, this will make public transport more expensive compared to the car, and NS worries that more people will opt for the car instead, NOS reports.

The price for train tickets and subscriptions will increase on January 1st. According to NS, the increase is mainly due to the VAT increase.

NS can also add inflation to its tickets. The rail company is currently working on an inflation rate of 1.8 percent, based on figures from the Netherlands' bureau of economic policy analysis CPB. Inflation means that second-class travel will be 1.8 percent more expensive on average next year, excluding the VAT increase. There will be no inflation correction on first-class travel, so that the price difference between the two classes becomes smaller. 

The government also allows NS to pass the increase in the costs for the use of the railway on to the traveler, but the rail company will not do this for the coming year, according to the broadcaster.