You may have noticed the spike in bicycle prices—of those imported or manufactured in the Philippines—by now. This is due to the strong demand from the fast-growing local bicycle community, especially after the government threw its full support behind alternative mobility to promote health and safety practices while we are still wrestling with the long-lasting effects of COVID-19.
To help cope with the need for bikes and make it affordable for commuters at the same time, the House Committee on Ways and Means led by congressman Joey Salceda has approved a provision that offers tax breaks to bicycle manufacturers, stated in Sections 17 and 18 under a pending bill titled ‘The Philippine Bicycle Act.’
Let’s be clear: The Philippine Bicycle Act is still under deliberation in its entirety. What the House panel signed off on are recommendations to grant tax incentives to foreign or local manufacturers of bikes, as mentioned under the National Internal Revenue Code.
The committee is still discussing provisions related to additional infrastructure, particularly bicycle lane policies, that would promote cycling as alternative transportation during these critical times.
“This essentially would make the use of bicycles, which is being pushed, semantic to the (efforts of the) DOF (Department of Finance) in applying for the three sources of funds,” says Salceda, referring to the Global Environmental Fund, Adaptation Fund, and Climate Impact Fund—all from the United Nations Fund for Climate Change—to offset the proposed tax break.
“The DOF is almost being instructed by this bill to make bicycles as part of the bankable projects under these three funds by the United Nations programs for climate change,” the Albay representative reiterated.
Aside from meeting the huge demand for bicycles, this provision will also help generate job opportunities for Filipinos. Do you think this will really help bring down bike prices in the country?
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