Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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50. To ask the Minister for Finance if he will consider reducing the VAT on e-bikes to 9%; and the first- and full-year costs of such a measure. [40478/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Deputy should note while I did give the matter some consideration, no decision was made in Budget 2025 to reduce the VAT rate on bicycles and ebikes. Further consideration can be given to this matter as part of the annual Budget process for Budget 2026. It should be noted that is not possible to treat specific categories of bicycles, such as cargo bikes or electric bikes, separately.

As with any VAT reduction there is no guarantee that VAT reductions would be passed to the consumer. I would also note that bicycles are already available at different prices points so the expected impact on consumer behaviour from a reduction in VAT is limited.

The estimated full year cost of reducing VAT on bicycles and ebikes to 13.5% is €8m. The estimated first year cost is €6.7m.