Government of Ukraine deregulates tariff forming in intercity passenger service inside Ukraine's regions

The Ukrainian Government continues a decentralization reform. The abolition of state regulation of tariffs for passenger transportation inside certain areas will enable the regions to collect more taxes and support local business.

The elaborated by the Government document envisages eliminating of state regulation by regional/municipal state administrations of tariffs for travel of passengers in suburban and intercity buses inside the regions. It should be noted that free tariff formation for long-distance routes between various regions has been applied since 1996.

The liberalization of tariff forming will facilitate the creation of competitive environment in this segment of transport services, the attraction of investments to renew and increase bus fleet, improve the quality and safety of transportation.

Urban passenger transportation is a socially significant service. Therefore, the Cabinet of Ministers of Ukraine has preserved state regulation of passenger travel within cities and communities, which will be exercised by local self-government authorities.