Concessionary travel cards will no longer be valid on public transport: what the draft bill proposes

This is set out in Bill No. 5651-2, which was drafted by the Ministry of Community and Territorial Development.

What the bill proposes

Ukraine is preparing to reform the mechanism for granting travel concessions on public transport.

Draft law No. 5651-2 provides that concessionary documents will no longer be used directly on public transport as grounds for free travel.

This applies, in particular, to pensioner and veteran ID cards.

Under the proposed model, all passengers – both those eligible for concessions and those who are not – will pay for their journeys under standard conditions.

How the new system will work

Eligible categories of citizens will receive funds on special bank cards.

This money can then be used to pay for travel via validators.

The draft law provides for the transfer of funds from the state or local budgets, electronic fare payment and uniform payment rules for all passengers.

In effect, the aim is to shift the concession from a ‘travel on presentation of a pass’ format to a cash payment format via a card.

What will change for those entitled to concessions

For those entitled to concessions, the new system should remove the need to prove their entitlement directly on public transport.

It is expected that this will reduce the number of disputes with drivers and make the payment process clearer.

At the same time, passengers will no longer need to show a pass for free travel, but will pay for their journey electronically using funds credited to a special bank card.

What will change for transport operators

For transport operators, the proposed model should make the accounting of compensation more transparent.

It may also reduce the number of disputes on public transport.

Furthermore, payments for subsidised travel should become more controllable, as journey data will be recorded via an electronic system.

Control of expenditure and routes

The new system should provide the state and local authorities with more accurate data on the number of subsidised journeys.

It will also be possible to see route occupancy and the actual budget expenditure on subsidised travel.

This should help to better plan the funding of public transport.

Who will fund the concessions

Under the proposed approach, concessions for veterans are to be funded from the state budget.

Other concessionary categories will be funded from local budgets.

Certain programmes may be funded through the relevant state bodies.

The extent of concessions will depend on the financial capacity of local authorities.

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