You may have noticed the spike in the prices of bicycles—whether imported or locally manufactured—by now. This is due to the strong demand from the fast-growing cycling community, especially after the government began promoting alternative mobility as public transport became even more limited during the COVID-19 pandemic.
To help cope with the need for bicycles and make these two-wheelers more affordable, the House Committee on Ways and Means led by congressman Joey Salceda has approved a provision that offers tax breaks to bicycle manufacturers, stated in Sections 17 and 18 under a pending bill titled ‘The Philippine Bicycle Act.’
Let’s be clear: The Philippine Bicycle Act is still under deliberation in its entirety. What the House panel has signed off on are recommendations to grant tax incentives to foreign or local manufacturers of bikes, as mentioned under the National Internal Revenue Code.
The committee is still discussing provisions related to additional infrastructure, particularly bicycle-lane policies, that would promote cycling as an alternative mode of transportation during these critical times.
“This essentially would make the use of bicycles, which is being pushed, semantic to the [efforts of the Department of Finance] in applying for the three sources of funds,” says Salceda, referring to the Global Environmental Fund, Adaptation Fund, and Climate Impact Fund—all from the United Nations Fund for Climate Change—to offset the proposed tax break.
“The DOF is almost being instructed by this bill to make bicycles as part of the bankable projects under these three funds by the United Nations programs for climate change,” he reiterated.
Aside from meeting the huge demand for bicycles, this provision will also help generate job opportunities for Filipinos. Do you think this will really help bring down bike prices in the country?
NOTE: This article first appeared on TopBikes.ph. Minor edits have been made.
