- Department of Transport proposed reducing bike VAT rate from 23% to 13.5%
- Concerns that savings would not benefit consumers, as retailers might increase prices
- VAT reduction could be regressive, benefiting those who spend more on bikes
- Cycle to Work Scheme already provides significant support for bike owners
- VAT reduction on bikes would cost €7m annually, with potential knock-on effects
- Department suggested a direct grant scheme might be a better approach
- Minister Chambers cautious about timing of any VAT announcement for bikes
- Concerns that benefits of VAT cut may not reach consumers
- VAT cut on bikes would primarily help students, retirees, and unemployed individuals
Source: rte.ie
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
