Dáil Éireann Debate, Tuesday - 8 November 2022
230. Deputy Darren O'Rourke asked the Minister for Transport if he has engaged with the Minister for Finance in relation to the VAT rate applied to bicycles in Ireland, with a view to lowering the current rate to make all types of bicycles more affordable; and if he will make a statement on the matter. [55343/22]
View answerAs the Deputy is aware, the Minister for Finance has responsibility for all tax measures including the setting of VAT rates for goods, including bicycles and related equipment. My Department has successfully engaged with the Department of Finance in relation to certain measures to encourage an increase in bicycle use, including the increase of limits in the bike-to-work scheme for e-bikes and, more recently, cargo bikes.
During budgetary negotiations, Departments including the Department of Transport and the Department of Finance discuss various initiatives and interventions to assess their potential impact and value-for-money. The VAT rate for bicycles was one of those raised by the Department of Transport this year, however no final decision was made in relation to this proposal.
My Department is continuously exploring ways to encourage the uptake of cycling as a mode of transport, and will continue to undertake research into the best possible interventions which could be introduced to encourage modal shift away from private cars towards active travel modes such as walking and cycling.
