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August 03, 2006

Proposed Canadian Bike Surtax has Retailers Cranky

Canadians love their Bicycles!

More than 1.5 million bicycles will be sold in Canada in 2006 and $550 million will be spent on cycling, as Canadians in increasing numbers hit the road.

But the euphoria over the increasing numbers of bike riders remains muted as Canadian bike retailers, bike makers, importers and cycling associations, await the federal government's decision on whether to impose a proposed 30-per-cent surtax on low-cost imported bikes. The charge is aimed at protecting Canadian bicycle assemblers from low-cost Asian imports.

The Canadian International Trade Tribunal (CITT) recommended last fall that the federal government impose a surtax on imported bikes selling in Canada for $400 or less. The surtax would be 30 per cent in the first year, 25 per cent in the second year and 20 per cent in the third year.

"Bike retailers oppose any more taxes on bicycles," says Barry Near, a member of the Independent Bicycle Retailers of Canada (IBRC) and manager of Sport Swap, a sports specialty store in Toronto and Barrie. About 1,000 retailers, employing 5,000 people, belong to the IBRC.

"It (the surtax) would be very detrimental to us. Over 30 per cent of our adult and children's' bikes sell in the $400 range. The tax would make the first bicycle purchase too expensive for many children and families," he says...

The federal government is reviewing the CITT report and recommendations, but has not made a decision on the report, Department of Finance spokesman Greg Scott says.

He gave no deadline on when the government will compete its review and release its decision.

The Full Story:

BUSINESS EDGE ( 5/25 ): Planned surtax splits bicycling community by Charles Wyatt.

August 3, 2006 in Cycling News Network | Permalink


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The tax was shot down.

Posted by: Fritz | Aug 4, 2006 4:55:58 PM

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