A coalition of European bicycling organizations is petitioning the European Commission to reduce the VAT rate for all bicycle products and services, arguing Europe should encourage more bicycle use to address economic, environmental and health issues.
The organizations -Colibi, the Assocation of the Euorpean Two-Wheeler Parts and Accessories Industry (COLIPED), the European Cyclists' Federation and ETRA – sent a joint letter to European Taxation Commissioner, Mr László Kovács to again defend their plea in favour of a reduced VAT rate.
“The European associations strongly believe that the environmentally friendliness of services and products is a very important argument in favour of reduced rates,” the coalition said in a statement released today. “Several member states, including the United Kingdom and France, share this view.”
The statement went on to say a lower VAT rate on cycling products would also further EC policies and objectives in the areas of environment (air & noise pollution), energy saving and energy efficiency, public health & safety, mobility (especially in urban areas) & safety, liveability of towns and cities, social inclusion, economy, urban and regional development and growth, tourism and culture.
“The loss of revenues resulting from applying a reduced VAT rate to all bicycle products and services will automatically be compensated by the growth of bicycle mobility and thus jobs in this labour-intensive sector,” the statement read. “Furthermore, member states will make considerable savings at different levels: public health, environment, road infrastructure, transport costs, road safety.”
