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ACT parent company Bira welcomes Bank of England's latest interest rate cut

8 May 2025

ACT parent company Bira has welcomed the Bank of England's decision to reduce interest rates from 4.5% to 4.25%, calling it a "much-needed boost" for the retail sector, including for cycling... Read more…

ACT parent company Bira responds to Beales' "Rachel Reeves Closing Down Sale" as iconic store makes final protest

8 May 2025

ACT parent company Bira has responded to the news that the 144-year-old Beales department store is staging a "Rachel Reeves Closing Down Sale" in its final weeks of trading, with giant yellow... Read more…

Employment Rights Bill - ACT and Bira answer your questions

28 Apr 2025

The Labour Government’s new Employment Rights Bill is set to be in force this year and the new regulations will impact high street retailers up and down the country.
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ACT parent company Bira welcomes Chancellor's action on unfair trade practices

25 Apr 2025

ACT parent company Bira welcomes the Chancellor's announcement of plans to create a level playing field for British businesses against unfair international trade practices.
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ACT parent company Bira responds to Prime Minister's 'Bobbies on the Beat' plan

11 Apr 2025

Bira has cautiously welcomed the Prime Minister's announcement this week on plans to put 'thousands of Bobbies back on the Beat' with a new neighbourhood policing guarantee.
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ACT parent company Bira warns of 'Atrocious April' as shop price inflation rises

1 Apr 2025

Bira has voiced serious concerns over the latest figures from the BRC-NIQ Shop Price Index for March 2025.
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ACT parent company Bira says Spring Statement fails to address high street crisis

26 Mar 2025

ACT parent company Bira has said the Chancellor's Spring Statement delivered today has failed to address the "perfect storm" of cost pressures facing independent retailers across the UK,... Read more…

ACT parent company Bira outlines key priorities ahead of Spring Budget

25 Mar 2025

ACT parent company Bira has outlined its key priorities ahead of the Chancellor's Spring Budget statement.
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Bristol-based cycling charity Life Cycle now offering Cytech training courses

20 Mar 2025

Cytech, the internationally recognised training and accreditation scheme for bicycle mechanics, have partnered with Bristol-based charity Life Cycle to offer a range of bicycle mechanic... Read more…

High street 'death knell' – indie retailers, including cycle shops, shutting doors ahead of April tax rises

12 Mar 2025

Towns and cities across Britain are already seeing a wave of closures as independent businesses shut their doors ahead of April’s triple tax burden, including those in the cycling retail... Read more…

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Portugal becomes first EU country to cut VAT on bicycle purchases this year

Posted on in Business News, Cycles News

Portugal has become the first EU country to cut VAT on bicycle purchases this year, from 23% to 6%.

Cyling on bridge

The move comes 12 months after new EU legislation permitted such changes, and Portugal sees it as part of a bid to boost cycling to 10% of all trips by 2030. The European Cyclists’ Federation (ECF) estimates customers will save up to €300 on a €2000 ebike if retailers and suppliers pass savings on to customers.

The move is a major advocacy success for ECF’s Portuguese member organisations, together with the country’s bicycle industry association ABIMOTA. For MUBi, which advocates, encourages, and demonstrate the benefits of urban cycling, it was one of six priority points for their campaign on cycling-friendly measures.

Rui Igreja from MUBi said: “We are very happy that, after dozens of meetings, the Portuguese Parliament has listened to MUBi’s arguments for reduced VAT rate on bicycles. The reduction from 23% to 6% will make pedelecs and cargo bikes more accessible. These have a high potential to substitute daily car trips, but their high price tag has been an obstacle to their adoption in Portugal. The yearly cost of this measure will be lower than what the current duty reduction on road fossil fuels costs per week. Besides, unlike motorised vehicles, cycling generates significant positive externalities, namely in terms of public health, which largely outweigh the costs of the VAT reduction.”

At a European level, the potential to reduce VAT rates on supply, rental and repair of bicycles, including e-bikes, was opened when the corresponding legislation entered into force in April 2022. ECF had advocated for this possibility in a joint campaign together with the Confederation of the European Bicycle Industry (CONEBI), and supported by Cycling Industries Europe (CIE). After the change in the legislation, the three organisations together supported their respective members in their national advocacy efforts, which now have borne fruit for the first time.

The cycling sector now looks to other EU countries joining Portugal in making bicycles more accessible for citizens through VAT reductions.

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