The finance ministry said today that it is about to start issuing grants on the purchase of bicycles and electric bikes (pedelic) as announced in the budget.

The grant is equivalent to the VAT paid on purchase and applies to all bikes bought from January 1 this year.

The measure is meant to promote alternative ways of transport and a healthy lifestyle. 

Finance Minister Edward Scicluna said the government was considering other schemes whereby tax incentives and exemptions may be offered to employers and employees who organise schemes which encourage employees to cycle to work.

Eligible applicants may apply for a once-only grant of 15.25% on the purchase price of the bicycle subject to a maximum grant of €70 in the case of a non- mechanised bicycle, and a maximum grant of €150 in the case of a pedelec (electrically-powered) bicycles.

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