Source: Zag Daily

Although the Finnish tax exemption scheme for bike and e-bike purchases through employers is coming to a close, an argument has been made that this does not signal the end of corporate cycling, and that companies everywhere can make a real difference in boosting active travel.

Mikko Ampuja, CEO and Founder of Finnish bike benefit company Vapaus, has highlighted that the Finnish scheme primarily benefited higher income earners, leaving affordable personal active travel options out of the reach of many. “High earners gained the greatest tax savings, while lower-income workers – who stand to benefit most from affordable transport – were often excluded.”

The end of Finland’s tax incentive scheme has forced Vapaus to change tack, Ampuja says. Having leveraged their purchasing power with a range of high-quality European e-bike and regular bike brands, they work with companies to offer bikes to employees, on an affordable monthly basis with payments taken from the salary for streamlined administration. Options to change to a new model mid-contract are available for a fixed fee.

How employers can make a difference

Ampuja points out that companies have the capacity to put cycling benefit policies in place that can directly influence and benefit large numbers of employees – leading to lower emissions and enhanced employee wellbeing. This is often in contrast to national policies, which are subject to shift and change – such as the ending of Finland’s tax scheme after a period of five years.

In countries where there is strong support for corporate cycling schemes such as bike leasing, the numbers of people opting for active travel are substantially boosted. Belgium has a 20-year-old law in place which mandates that companies with over 500 employees must have a corporate mobility plan; the nation’s bike leasing sector saw a growth in net added value from €7 million in 2015, to €102 million in 2023. Germany is another success story, with 750,000 new company bikes being leased in 2024, bringing the country’s total number to 2.1 million leased bikes.

At the EU level, pressure is increasing on the Commission to include policies that support and boost bike leasing schemes as it prepares its Clean Corporate Vehicles initiative.