Lux Express Latvia has filed a legal claim with the Administrative District Court against the Ministry of Transport of Latvia and the state-owned Road Transport Administration (ATD). The company is seeking a court order to compel the state to compensate it for the costs of providing state-mandated fare discounts on intercity commercial routes.
Under the Public Transport Services Law and Cabinet regulations, discounts are required for specific groups, including orphans, people with disabilities, politically repressed persons, and members of large families who hold the 3+ Family Card.
Bureaucratic Delays and Unpaid Funds
Lux Express Latvia reports that it has provided these discounts for more than two years without receiving the legally required compensation. The company states that the total amount of unpaid compensation has already exceeded half a million euros.
“We fully support the availability of state-mandated fare discounts, but more than a year of discussions with the Ministry of Transport and the ATD regarding compensation payments has produced no results,” said Aldis Ķibēns, board member of Lux Express Latvia.
Ķibēns described the compensation process as “unjustifiably bureaucratic,” noting that new requirements are constantly introduced. He stated that while the Ministry of Transport had the opportunity to decide on payments, it instead returned the matter to the ATD.
The Terms of Compensation
On April 7 of this year, the ATD issued a decision recognizing the company’s right to compensation. The recognized amount is 670,398 euros for passengers transported between May 2, 2024, and December 31, 2025.
However, the ATD stipulated that payment would only occur after the company submitted bookkeeping records and proof of value-added tax (VAT) payment. The authority also reserved the right to revise the compensation amount at a later date.
Despite viewing these additional conditions as prima facie unlawful, Lux Express Latvia complied with the requirements to secure payment quickly. The company paid 75,664.81 euros in VAT from its own working capital, even amid rising costs caused by the fuel crisis.
Legal Precedents and Next Steps
The company pointed to a 2022 ruling by the Court of Justice of the European Union, which favored a commercial transport operator in a similar case in Estonia.
Payment of the current compensation remains dependent on a decision by the Public Transport Council, which is scheduled to meet on May 14.
Aldis Ķibēns expressed concern over the state’s reliability, questioning whether the ministry has sufficient funds to compensate carriers. He noted that the company had only one month after the ATD decision to seek legal remedies, prompting the current court filing.
Looking ahead, the situation may be resolved through negotiations, or the court could order the state to fulfill its payment obligations. A failure to resolve the matter could potentially impact the continued availability of convenient intercity commercial transport services for discounted passengers.
Frequently Asked Questions
Who is eligible for the state-mandated fare discounts?
Discounts are granted to holders of the 3+ Family Card (members of large families), people with disabilities, orphans, and politically repressed persons.
How much compensation has the ATD recognized for Lux Express Latvia?
The ATD recognized a compensation amount of 670,398 euros for the period from May 2, 2024, to December 31, 2025.
What additional requirement did the company have to meet to receive payment?
The company had to provide bookkeeping records and proof of VAT payment, which resulted in Lux Express Latvia paying 75,664.81 euros into the state budget.
Do you believe government-mandated discounts should be fully funded upfront by the state to avoid commercial disputes?
