Finance minister launches grant scheme for purchase of bicycles

Minister for finance Edward Scicluna launched a budget measure whereby individuals who purchased a normal or electric bicycle (pedelec) as from 1 January 2015 will receive a one-time grant equivalent to the VAT paid.

Scicluna launched the grant scheme on Tuesday, during an event held at the Zurrieq promenade. Also present for the event were government officials from the Ministry for Finance, representatives from Transport Malta, and representatives from the Bicycle Advocacy Group (BAG). For this grant scheme, the Government is allocating €120,000.

Speaking during the launch, Scicluna spoke of the economic benefits of a great adoption of alternative means of transportation that reduce vehicle emissions and also traffic congestion, such as cycling.

He further underlined that electric bicycles, which are bicycles equipped with an electric motor that provide additional motive force, are also suitable for more everyday non-recreational use, such as commuting to work or to places of education.

“When the BAG initially made the recommendation that the government should introduce a fiscal incentive to encourage the take-up of normal and electric bicycles, we saw it as a small contribution to improve the country’s collective health by reducing emissions, encouraging physical activity, and also as a way to reduce traffic congestion,” minister Scicluna said.

Scicluna said that a healthier population would reduce pressures on the public health service, enabling the government to reallocate existing resources towards providing other much-needed services.

He also said that the government is looking into setting up other schemes whereby tax incentives and exemptions are offered to employers and employees who organise schemes that encourage employees to cycle to work.

He said that the government is identifying large places of employment and centres of education, such as the Mater Dei Hospital, the University, and industrial estates, for this purpose.

“By offering cycling-friendly facilities to their employees, these employers could benefit from attractive tax exemptions,” Scicluna said, adding that more information about these schemes will be announced in the near future.

Eligible applicants may apply for a once-only grant of 15.25% on the purchase price of the bicycle subject to a maximum grant of €70 in the case of a non-mechanised bicycle, and a maximum grant of €150 in the case of a pedelec bicycle.