VCÖ seeks VAT cut as Vienna plans public transport fare rise

Vienna’s planned public transport fare increase at the turn of the year has drawn criticism from the VCÖ, which is calling for a lower VAT rate instead, ORF reported.

Two-thirds of Vienna residents aged 16 and older use public transport daily or several times a week, amounting to about 1.1 million people, said Christian Gratzer of the VCÖ in an interview with ORF’s Wien heute programme. Their use of public transport helps reduce traffic jams and vehicle emissions, he said.

The VCÖ said higher fares would conflict with efforts to encourage more people to switch from cars to public transport. It acknowledged that Wiener Linien, Vienna’s public transport operator, needed more revenue as costs rise, but said the burden should not fall on passengers.

The group proposed cutting VAT on public transport tickets from 10% to 4.9%. The change would be a federal responsibility, Gratzer said, and Vienna could advocate for it at the national level. Other federal states would also benefit.

Gratzer also criticised the federal government’s fuel-price brake, saying it offered relatively little benefit to Vienna residents. Half of households in the city do not have a car, while the rest use cars less than the Austrian average, he said.

The VCÖ also questioned plans to leave Vienna’s parking fees unchanged in 2027 while public transport fares rise again. At the previous increase in January, the annual parking permit went up by 36 euros, while the public transport annual pass rose by 102 euros. Gratzer also questioned why the permit costs the same in the first district and inside the Gürtel as it does in the outer districts.

Higher fuel prices also put pressure on drivers, Gratzer said, but he argued that public transport should continue to expand and become more attractive to encourage people to leave their cars at home.