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Govt cancels VAT reduction on bicycles because they are 'too expensive'

Govt cancels VAT reduction on bicycles because they are ‘too expensive’

The value-added tax on bicycles and electric bikes will not be reduced to 6 percent after all. The government finds this procedure too expensive. Just last month, production duties on diesel and gasoline were drastically reduced.

In order to encourage more people to choose the bicycle as a means of transportation, the Chamber approved in 2019 Unanimously the proposal of the good PS To reduce the value-added tax on bicycles and electric bicycles from 21 to 6 percent. Before it could be introduced, the procedure only needed approval from the European Commission.

This approval has now been granted, but the government has now decided to follow in its footsteps and cancel the promised VAT reduction.

“Given the budget context, the government has decided, as part of a global review of budget priorities, to eliminate the 6 per cent preferential tariff for bicycles, electric bikes, and go-karts,” he said. Belgium From the royal decree issued on Wednesday.

‘Painful in many ways’

Last month, the federal government decided to increase taxes on diesel and gasoline To the absolute minimum allowed by Europe† This measure costs the Treasury approximately €5.5 million per day.

“The fact that the government is breaking that promise is painful in many ways at the same time,” said Wes Callins, a spokesperson for Westersbond. We understand that choices must be made, but those choices must provide an answer to the problems we face. to Latest Climate Report In mind, the government could have done a good job promoting a climate-neutral mode of transportation. The reduction in value-added tax from 21 to 6 percent also means that bikes are no longer luxury products. It’s just a code, but it’s a reliable code.

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The government still wants to use the reserved budget – €80 million per year – for the so-called “alternative mobility policy to promote the bicycle”. This mainly relates to improving the bicycle allowance for commuting. Callins: Of course it’s not bad, but why not a story of both and a story? Unfortunately, a budget that only goes to commuting to work doesn’t do kids or students cycling.