Rabat - The Moroccan government announced that it would raise train ticket prices of January 2016.
Rabat – The Moroccan government announced that it would raise train ticket prices of January 2016.
Railway users will see an increase in ticket prices, according a statement made by the Minister of Finance Mohamed Boussaïd at the Finance Commission in the House of Representatives on Thursday.
This increase in prices is a consequence of the rise in Value Added Tax (VAT) on train tickets from 14 percent to 20 percent, as determined under the Finance Bill of 2016.
The government has invested “billions of dirhams at a rate of 20 percent” the Minister said to justify the increase to train users.
“The increase in VAT will generate no additional revenue to the state. It invests and thus it deducts. It’s just a matter of cash flow” he added.
Several train routes will be affected by the new increase, some more than others. For some trips, the increase in price could reach MAD 11.
The ticket price for Morocco’s most prominent route – Rabat-Casablanca – will see a 2-dirham rise, increasing from MAD 35 to MAD 37.
For the Rabat-Kenitra route, train ticket prices will only increase 1 dirham, reaching MAD 16 per pass.
Longer distance routes will register larger increases. For instance, the Rabat-Tangier route will increase MAD 5, and the Casablanca-Oujda route will rise by MAD 11.
Minister Boussaïd referred to the increase in train passes as an “increased solidarity” during his announcement at the Finance Commission.