In addition to separate cycling paths, the Netherlands offers tax credits as incentive for its population to cycle to work. Each Dutch who rides a bicycle to work, gets US$ 0.22 per km, and the amount is tax free.
The Country reportedly has over 22 million bicycles, with over 17 million residents already using bicycles to transport themselves to work. The ‘bicycle nation’ can proudly claim that that over a quarter of its population prefers cycling to work.
The Dutch government believes that such an initiative works in favour of the companies, as the workforce remains healthy and in shape. This reduces absenteeism and naturally increases productivity. That is not all— most organisations also save on parking costs!
While The Netherlands is the only country presently offering monetary incentives to people cycling to work and avoiding usage of fossil fuel, the UK has a different model to get its population to cycle.
In the UK, employers purchase bicycles and offer them to employees on a lease for a year. The lease amount gets deducted from the employees’ monthly salary. This also helps save tax. Those who use their cycles for business are also eligible for mileage allowance, which is about US$0.26 per mile.
Similar incentive is offered in Belgium too, with cyclists receiving $0.26 per km.
In Luxembourg, employees can avail a tax discount of US$340 if they purchase a bicycle.