Source: Zag Daily

The Finnish government earlier this year announced an end to a popular scheme that allowed employees to purchase e-bikes and traditional bicycles through their employer with a tax exemption of up to €1,200 annually. Now, over 51,000 Finns have signed a petition opposing the change.

The announced change – due to come into effect in January 2026 – has had a significant negative effect on Finland’s bike industry, with sales dropping and some bike shops filing for bankruptcy.

Active travel benefits

According to Mikko Ampuja, CEO and Founder of Finnish bike benefit company Vapaus, the proposed legislation is based on flawed thinking, undermining efforts to boost active travel. “Our data shows that half our customer base were driving their cars less so it was already evident that the scheme was replacing car trips,” he says. He also highlights that one assumption – that young urban professionals were the primary beneficiaries of the scheme – is incorrect. “But that’s not the case. Our data shows that the median user of a benefit bike is actually a middle aged, middle income man which is notoriously the hardest demographic to get physically active.”

Financial considerations

The proposed ending of the scheme would, according to the Finnish government, save approximately €47 million in 2026, in an effort to continue the recovery from a recession. However Pasi Holm, of sustainability consultancy Finnish Consulting Group, examined the government’s proposal and concluded that the total savings would be far less than the stated €47 million. Mikko comments that, “My sense is that this was a sudden knee-jerk decision that hadn’t been properly thought through.”

Opposition to the proposal

Mikko breaks down the formal public response to the proposal. “There were 56 statements and comments made on the law proposal. Out of those 56 there was one neutral, six supporting removal, and 49 opposing it. Even those in favour raised questions about transition periods and why bicycles were singled out while others, such as private cars, were not.”

Bike-industry groups have been lobbying for reconsideration, or the implementation of new initiatives which would support green mobility. A petition which opposes the proposed change has, to date, received over 51,000 signatures – a significant proportion of Finland’s 5.637 million population. The petition is supported by the Finnish Cyclists’ Federation, industry retailers, and employee benefits companies.

The government has advised that the scheme could be retained for existing contracts, but there are fears that such ambiguities could lead to employees losing the benefit during internal transfers. Mikko comments, “what’s on the table right now seems like an administrative nightmare.”