BVG and Wasserbetriebe do not pass on the VAT reduction to customers

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BerlinBerlin’s state-owned companies such as the transport and water companies are currently not passing on the reduction in VAT to their customers. This emerges from a response from the Senate Finance Administration to a request from the FDP Vice-Group Leader Sibylle Meister, which is available to the dpa. Meister, spokeswoman for her group’s budget and finance, criticizes the Senate response and points out that the temporary reduction in VAT has been in effect since Wednesday.

“All private companies are expected to immediately pass the reduction on to customers,” she says, according to dpa. “Only the state-owned companies are once again not well prepared.” According to the BVG: “Approval law and sales lead times do not allow a timely change in local public transport (ÖPNV) fares”. It is currently being examined how the tax reduction can be passed on to customers.

The water companies said that “various possible implementation scenarios are being examined with high pressure”.

Note: Originally we had written that the pool companies are still considering how they could pass on the VAT reduction to customers. In fact, price cuts have already been made.

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