Remove the PST and Add Rebates for Electric Bikes

Currently in B.C. bicycles and transportation fares are exempt from PST charges, and clean energy vehicles are eligible for rebates up to $5,000. Purchases of new electric bicycles, and their electric parts, are charged PST, and are not eligible for rebates. Something doesn’t seem right here, does it?

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For a brief period of time, when B.C. was running the HST tax, electric bikes did, in fact, receive tax exemptions. It seems that in the transition back to the system we currently use, minor details such as taxes on assisted bikes slipped through the cracks.  

For small business owners however, this detail feels rather significant. "It's really quite a hassle." Says Paul Dragan of Reckless Bikes. "When repairing an electric bike, we have to charge PST on the electric parts like the battery and motor while there is no PST on the bike parts like wheels and brakes.". Creating two separate lines, and a once unnecessary step to small business’s financial records, is cumbersome and aggravating.

For individuals, the re-added tax could be a barrier to purchasing, or converting to, an e-bike. Electric bikes suitable for commuting typically cost $1500-$3000, making the suggested PST exemption worth about $105 - $210 for buyers, plus on-going PST charges on maintaining parts. Additionally, a rebate would provide financial incentives for individuals to incorporate active transportation into their daily lives.

Electric bikes are being studied by biking centres around the world. The Netherlands, and Norway have measured significant increases in bicycle trip length, and frequency due to use of electric bikes.  In 2013, a survey in the Netherlands reported that 5 percent of the total population, and 10 percent of the 60+ population owned an e-bike, and those with electric models ride twice as many kilometers compared to the 60+ cyclists with a regular bike. In 2014, they found that those with e-bikes rode 22% more kilometres per week, and the average commuting distance rose from 6.3 to 9.8 kilometres. Assisted bikes make up 21% of bicycles sales in the Netherlands.

Electric bicycles remove accessibility barriers by allowing riders to conquer hills, speeds, and distances that would otherwise be impossible for some people. These machines, that emit zero carbon, make active transportation a viable option for a broader population, opening it up to all ages and abilities, especially in combination with safe cycling infrastructure.

With B.C.’s aggressive climate targets for 2050, and municipal initiatives to increase active transportation, removing financial barriers to access electric bicycles is logical. Considering that it was not long ago that we actually didn’t pay taxes on these bikes, it is more of an error correction, than a radical request.

The British Columbia Cycling Coalition has submitted a formal request to remove the PST and add rebates, similar to those available for electric cars, as part of their Climate Leadership Action Plan recommendation.

Also included in the recommendations a billion dollars over ten years for bike paths and protected bike lanes as well as improved design standards that can safely accommodate electric bikes and enable longer distance commuting.

 

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We make cycling better through education, action and events.  More cycling means healthier, happier, more connected communities. We’re leading the way in making cycling an attractive choice for everyone.

We serve the Metro Vancouver communities of Anmore, Belcarra, Burnaby, Coquitlam, Delta, Langley, New Westminister, Maple Ridge, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock.

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