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9 Jul 2025

A recent BBC Breakfast segment has sparked backlash from the cycling community over its portrayal of e-bikes, with critics accusing the broadcaster of conflating legal e-bikes with illegal,...

8 Jul 2025

More than 30 locations across Scotland have seen a major rise in the number of people cycling, according to newly released data.

7 Jul 2025

Sixteen illegally upgraded e-bikes capable of speeds up to 40mph have been seized and disposed of in a joint enforcement operation in Birmingham city centre.

7 Jul 2025

Bristol-based Cytech training provider and ACT member Life Cycle has launched its award-winning Bikes Beyond Bars programme at HMP Bullingdon, expanding a project that has already impacted lives...

4 Jul 2025

New data from Strava reveals a major surge in cycling across the UK, with Gen Z and Millennials leading the charge.

3 Jul 2025

Shimano has launched an urgent investigation into what it describes as a “critical” shortage of skilled bike mechanics across Europe, warning that the situation threatens to...

2 Jul 2025

MPs have called on Amazon and eBay to tighten controls after e-bikes and chargers flagged as serious fire risks were found for sale on their platforms.

25 Jun 2025

The E-Bike Positive campaign has seen major success in the first half of 2025, with its message reaching nearly 8 million people across the UK through high-profile media coverage and growing...

20 Jun 2025

The House of Commons Business and Trade Committee has asked the ACT, and its parent company Bira, to help them reach out to small business retailers across the country, for their quick input on...

20 Jun 2025

Activate Cycle Academy has reopened its Cytech training facility in Darlington, offering a full range of courses from Home Mechanic up to Cytech Technical Three.
 

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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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