Scrapping VAT on bikes would encourage more people to cycle and make Irish roads safer for everyone, the Irish Cycling Campaign has suggested.  

Minister for Transport Darragh O’Brien has said he is keen to build on the success of the Bike To Work Scheme which allows employers to buy bikes for their staff. 

Workers then pay for the bike gradually through salary reductions. 

Minister O’Brien has said civil servants are now examining how to extend the scheme to third-level students ahead of the autumn budget. 

On Newstalk Breakfast, Irish Cycling Campaign spokesperson Martina Callanan said anything that encourages people to buy a bike is “hugely positive”. 

“This will give thousands of people transport independence and healthy habits for life,” she said. 

“The Irish Cycling Campaign has called for years and years in our pre-Budget submissions for restructuring of the Bike To Work Scheme. 

“This seems to be the first step in that direction. 

“We really need to move away from providing financial supports for bike purchase to PAYE workers and their supportive employers only, to a fairer, more accessible system for college students.”

A cycle lane in Dublin. Photo: Sam Boal/RollingNews.ie

Ms Callanan said the “devil is in the detail” but that she is “looking forward” to seeing what the Minister proposes.

“It’s really interesting that the Minister has said that he’s going to be investigating a grant or a tax incentive for third-level students,” she said. 

“Would the Minister consider scrapping VAT on bike purchases and therefore just make bike purchases and equipment accessible for everybody?”

Parked bicycles, © PA Archive/PA Images

According to a CSO survey from 2021, 74% of Irish people never cycle and only 4% do so at least five times a week.

However, Ms Callanan said everyone benefits if more people cycle. 

“One, that takes more cars off the road and makes it easier and safer for more people and different kinds of people to cycle,” she said. 

“Giving broad financial support to make bike purchases easier for people, it’s just common sense.

“To buy a high quality bike, that can be a significant financial investment for a person or for a family. 

“So, easy accessible financial supports [are] hugely welcome.” 

In the Programme for Government, Fianna Fáil and Fine Gael promised to, “Develop a connected network of greenways and cycle routes across Ireland.”

Main image: Cyclists in Kerry. Picture by: Alamy.com