|
Prospective cyclists could get a tax break if a local MP's proposed legislation survives Parliament.
Joyce Murray, Liberal MP for Vancouver Quadra wants the GST eliminated from bicycles and cycling-related goods and services including panniers, helmets, locks, repairs and bike safety courses. The goal is to encourage cycling.
Murray pedalled her Dutch bike around the West Side Thursday lobbying bike shop owners and customers.
"Bike shop owners] and their customers see the triple dividend, as we put it, for riding bikes: less pollution, better health and lower cost," Murray said. "So many of our [vehicle] trips in Metro Vancouver are five kilometres long or less and once people start using their bicycles, then they see that it's actually easy and convenient and fun."
Murray said she met no critics of her private member's bill on her route. But one person suggested placing a $1,000 ceiling on the GST exemption to focus on cycling commuters.
Tim Woodburn, owner of two West Point Cycles outlets on the West Side, isn't sure a ceiling to be eligible for an exemption is necessary. Some of his customers spend more than most on their bikes, and he believes providing a broad incentive for the healthy, environmentally friendly activity is wise.
"This isn't an idea to help low-income bicycle riders. It's here to help anyone who chooses to ride a bicycle," Woodburn said. "The amount of GST that goes into the GST pool from bicycles is so small that I don't think [the ceiling] is necessary."
Customers who buy bikes from his shop to commute generally spend $500 to $1,000 on their wheels, he said, which if the bill passes, would be a GST savings of $25 to $50.
Woodburn said he's worked with Murray on the wording of the bill. She proposed the GST exemption, which he sees as the simplest way to give a tax break to a bicycle consumer.
"Basically what the bill does is mirrors the provincial legislation that makes bicycles and many bicycle products PST-exempt," he said, adding Murray's bill also includes bike trailers.
"We do have young families who use a bike trailer as a means of transportation to get to school, to get the kids to daycare in the place of an automobile," he said.
Murray says her bill complements Opposition leader Stephane Dion's proposed Green Shift environment plan.
"It's appropriate to think about how we can use our tax system to encourage the behaviours that will reduce greenhouse gas emissions," she said.
Liberal Charlottetown MP Shawn Murphy has tabled a similar bill to remove GST from bicycles.
Murray's Bill C-572 has passed first reading in Parliament. At second reading, the bill would be debated in the House of Commons. If it's approved in principle, the bill would go to committee to work out details. It could then go to third reading, the final opportunity for debate and possible approval to become law. How long that would take or whether it would go that far after an election is anyone's guess.
Murray noted the House has a long list of private member's bills to be considered. "And as a new MP I'm pretty far down in the queue," she noted.
|
