John Cregan (Limerick West, Fianna Fail)
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Question 258: To ask the Minister for Finance the types of taxes imposed on the sale of electric or battery assisted bicycles; his plans to reduce these taxes, in view of the environmental benefits of same; and if he will make a statement on the matter. [4675/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Electric bikes are subject to VAT at the standard rate of 21%, with only very minimal VRT charges applying usually less than €20.

In relation to the rate of VAT applicable to bicycles (electric or otherwise), the position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Bicycles are subject to the standard VAT rate which in Ireland is 21%. The one exception to this is bikes (Trikes) for the disabled which are zero rated. However, it is no longer possible to extend the zero rate to new goods or services. Furthermore, it would not be possible to reduce the VAT rate applicable to bicycles without reducing the rate for all goods and services subject to the standard VAT rate.