Finland’s e-bike and bike sales drop dramatically as tax break is removed
Comments Off on Finland’s e-bike and bike sales drop dramatically as tax break is removedSource: Helsinki Times, Bike Europe
According to Finland’s Fashion and Sports Commerce Association, the country’s bike sector has seen a sharp decline in sales, after the government announced the end of a scheme that allowed employees to purchase bikes through their employer with a tax exemption of up to €1,200 annually.
The Association states that, in spring of 2025, e-bike sales have fallen by around 70% and traditional bike sales by 25% year-on-year, and total bicycle sales are down by as much as 40%. Although the tax incentive scheme is not due to end until 2026, the decision has already caused a ripple effect in Finland’s bike industry.
Since the introduction of the tax exemption scheme in 2021, over 100,000 employees are estimated to have enjoyed its benefits. E-bikes constitute a substantial portion of the bike sales linked to the scheme, with sharp sales drops noted by Juho Kahra, CEO of Electric Bicycle Center, and Jani Lundberg, CEO of Velosport, following the government’s announcement of the scheme’s end.
A lack of clarity about the decision and its implementation has also been noted. Jukka-Pekka Hellman, tax expert at the Confederation of Finnish Enterprises, stated, “The decision to remove the tax exemption without a transition period will come as a big surprise not only to the users of the benefit, but also to the employer companies offering the benefit and to the bicycle shops.”
Industry groups are lobbying for Finland’s government to reconsider the decision, or launch alternative initiatives which would support cycling and green mobility.