Monday, July 15, 2024

Brakes applied to FBT for bikes, scooters

Bikes, electric bikes and scooters will included in the transport modes exempted from fringe benefit tax under changes proposed today.

Revenue Minister, David Parker said the change would allow bicycles, electric bicycles, scooters, electric scooters, and micro-mobility share services to be exempt from fringe benefit tax where they are being used for commuting to and from work.

“This measure will support New Zealand’s shift to more sustainable transport options and encourage employers to provide further sustainable and climate-friendly transport options for their staff,” Mr Parker said.

The amendment to the Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill (No 2) Bill was in line with calls from the Green Party and submitters to the Bill.

“Many people had written in pointing out the health and environmental benefits of using such forms of transport. The Government agrees and considers that there is a public good to be gained from encouraging low emission transport,” Minister Parker said.

“As Environment Minister as well as Revenue Minister, it’s great to see the tax system contribute to the Government’s efforts to reduce emissions and increase the uptake of low-emissions vehicles.

“The Bill currently being considered by the House already contains a proposal to exempt employer-subsidised public transport used by an employee to commute to and from work, and this amendment extends that measure.”

The Bill includes a regulation-making power that would specify the maximum cost and the specifications of a vehicle to ensure the provision is not misused.

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