COLIBI/COLIPED Lobbying for VAT Reduction

BRUSSEL, Belgium – In reply to a consultation paper of the European Commission the European bicycle industry represented in the associations COLIBI and COLIPED, has recently once again underlined the importance of a reduced VAT rate on all bicycle related products in relation to different EU policies.

In their letter to the EU Commission, COLIBI, the Association of the European Bicycle Industry and COLIPED, the Association of the European Two-wheeler Parts & Accessories Industry have underlined the importance of the bicycle as an environmentally friendly and sustainable mode of mobility. Therefore the bicycle can contribute to the realisation of many European policy objectives, like improving the city environment.

COLIBI/COLIPED strongly believe that the temporary provision (e.g. application of a reduced VAT rate on bicycle repair) should be made permanent in order to be even more effective while the criterion of ‘environmentally friendly’ service or product should be included and given much more attention.

Environmentally friendliness

The industry organisations underline the environmentally friendliness of the service and product as a very important argument in favour of reduced VAT rates. In addition, they state that increased bicycle use can also contribute positively to realise goals in the field of environment (air & noise pollution, energy efficiency), public health & safety, mobility (especially in urban areas) & safety, liveability of towns and cities, economy, urban and regional development and growth, tourism and culture.

Transport is the second largest single source of greenhouse gas emissions in Europe and is rising rapidly. Urban mobility accounts for 40% of all CO2 emissions of road transport and up to 70% of other pollutants from transport. While the European Commissions objective is to have a 20% reduction in greenhouse gas emissions by 2020, transport is the only sector in the EU in which CO2 emissions have not fallen once since 1990. On the contrary, they have risen by almost 30%.

COLIBI/COLIPED claims: “Unquestionably, a bicycle is the most environmentally friendly, energy efficient and sustainable mode of wheeled mobility. A bicycle doesn’t consume any fuel, oil or gas, it doesn’t pollute and it merely needs human (muscle) power. As such, the bicycle is not only a great contributor to a better environment; it also helps citizens and governments to save on their energy expenditures.”