Cycle Industry News)
Outlining how workers using leased company bikes can often pay more in tax than they would using an electric car, RAI says a shake up is required to encourage active and clean travel.
“Leasing is necessary for more expensive bikes and speed pedelecs (rapid e-bikes) to make them available to the employee,” said president of RAI’s cycling arm Wouter Jager.
At present employers faced with current tax regulations end up doing little to nothing on incentivising active travel, believes the RAI. Should a worker now want to lease a bicycle, then under current tax law, the full economic value of this bike is added to income and payroll taxes paid thereon. There is no clear low addition system for bicycles, as there is for cars.
According to RAI’s chairman, a typical speed pedelec costing 3,500 euros will require the owner to pay between 120 and 150 euros in additional tax per month for the lease of the bike.
“This monthly amount is double that of an electric car worth 40,000 euros. That is crooked,”said RAI’s chairman. “It is fairer, cleaner and healthier to exempt the leasing on a bicycle and thus much more attractive to employers.”
Research by Gazelle has recently demonstrated how 4 in 10 Dutch people would consider switching a car commute for a bicycle journey, but would like some form of financial incentive.