OTP mulls tax break to boost rail users

OTP mulls tax break to boost rail users

The government has been asked to provide income tax deductions for regular users of the electric train to boost ridership across the system, said the Office of Transport and Traffic Policy and Planning (OTP).

OTP director Sarawut Songsivilai said the cost of traveling on the electric rail network is substantially higher compared to buses, so the public should be given incentives to make the switch from using private vehicles.

“So, we are planning to ask the government to offer income tax deductions to regular electric train users,” Mr Sarawut said.

“Under our proposal, private companies that subsidise their employees’ train journeys may also make a claim for tax deductions.”

Similar incentives could also be provided to civil servants and private sector employees who do not receive monthly transport stipends from their companies, he said.

These incentives, if approved, would help reduce overall living expenses while at the same time help alleviate congestion by drawing people away from their cars and onto the public transport system.

“This is a win-win solution,” Mr Sarawut said.

In the future, the government should launch campaigns to encourage more people to use the city’s electric train system, he said.

“The government should provide more free trips on new routes, which can then be followed up by a discount of between 5-10 baht during the trail period to boost ridership,” he said.

At present, journeys made on Bangkok’s electric rail network only account for about 3-4% of all trips made by the city’s commuters each day. Trips on the capital’s electric train network are also more expensive than any other means of public transportation in Bangkok.

According to a source at the Transport Ministry, the average electric train user spends about 2,500 baht each month on tickets, whereas users of public minivans fork out 2,100 baht in fares.

On average, regular users of the Khlong Saen Saep express service spend 1,700 baht a month on tickets, while the average user of non-air conditioned buses and the Chao Phraya Express Boat users spend about 1,200 baht a month.

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