Ukraine will introduce a new mechanism for providing public transport fare benefits — they will be converted into monetary payments instead of free travel based on an identification certificate. The Verkhovna Rada adopted the relevant bill (No. 5651-2), the parliament reported on November 10, UNN writes.
Details
The bill was supported by 235 members of parliament.
The document provides for a transition to a targeted monetary form of implementing fare benefits and the introduction of a unified automated fare payment accounting system. In particular, it proposes introducing an electronic ticket as the primary document confirming the right to discounted travel
As Olha Vasylevska-Smahliuk, a member of parliament from the Finance Committee, explained, the following is envisaged:
- funds for discounted travel will be credited to special bank accounts;
- trips will be paid for with a bank card or electronic ticket;
- each discounted trip will be recorded by an automated system;
- carriers will receive compensation for services actually provided, rather than for the estimated number of beneficiaries;
- discounted travel for war veterans will be financed from the state budget. For other categories of beneficiaries, funding will be provided mainly by local budgets.
As noted, the document provides for reforming the existing system for implementing fare benefits and addresses a number of systemic problems in the area of discounted transportation, including:
- the absence of accurate records of the number of beneficiaries and the actual volume of transportation;
- the lack of transparency in the use of funds to compensate carriers;
- abuses by certain carriers and violations of beneficiaries’ rights;
- the absence of a legal mechanism for providing targeted financial assistance at the local level;
- conflicts between carriers and groups of the population entitled to benefits.
The implementation of the law is expected to:
- create a unified and transparent system for recording beneficiaries that will minimize the risks of manipulation and ensure the efficient distribution of budget resources;
- introduce modern electronic tools for recording and monitoring transportation, enabling verification of the actual volume of services provided;
- reduce the number of conflict situations between carriers and passengers through clear rules and a unified compensation system;
- optimize local budget expenditures by eliminating abuses and unjustified costs.
The law on reforming the discounted travel system will enter into force on July 1, 2028, which "will ensure a sufficient transition period for technical, organizational and regulatory preparations."
Within nine months of the date the law is published, the government is instructed to submit bills providing for amendments to the Budget Code of Ukraine, which will clearly delineate the sources of funding for benefits between the state and local budgets.