Belgium decides not to decrease VAT on bicycles, E-bicycles to 6%: Royal Decree

In Belgium, Europe, a meeting was held related to lowering VAT on bicycles and electric bicycles to 6 per cent, but now it has been mentioned that it has been cancelled, as per a Royal Decree.

According to the sources, the state Secretary for Budget Eva De Bleeker (Open VLD) stated in a statement on Thursday, March 7, that the resources will be used differently.

Moreover, the government unanimously adopted a plan in 2019 to cut the VAT on bicycles and electric bikes from 21% to 6% in order to encourage more people to use bicycles as a mode of transportation for short and medium trips.

The policy simply needed the European Commission’s permission, which it gained in the meantime, but the administration has now opted to reverse it.

Along with this, the decree was mentioned, “After reassessing budgetary priorities, the government has decided to drop the 6% preferential tariff scheme for bicycles and electric bicycles.”

The government assessed how to utilise the registered money as efficiently as possible during last week’s budget review to meet the original goal of putting more people on bikes, but without the VAT decrease.

Meanwhile, De Bleeker mentioned, “We are only improving the way the money is used by focusing very specifically on where the greatest challenge lies: in commuting.”

“For every person who gets on a bike, there is one less car in the morning and evening rush hour. That is good for human and environmental health and for our economy. So the €80 million that was originally provided are still provided and are now being put to much better use.”

Furthermore, “They wondered whether the measures would not simply lead to price increases so that the consumer would not feel the effects of the measure at all.”