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Ontario Extends Bike Tax Exemption

Published March 27, 2008

TORONTO, Ontario (BRAIN)—Ontario's latest provincial budget features a two-year extension of the tax holiday on bikes, introduced last December.

Bikes that cost less than $1,000, and bike helmets and select bike safety equipment are exempt from the Ontario Provincial Sales Tax (PST) until December 31, 2010.

Pete Lilly, president of the Bicycle Trade Association of Canada (BTAC), praised the move as a sign of good things to come.

"We're thrilled that the province has reaffirmed its commitment to building a bike-friendly Ontario," he said. "The exemption will save consumers millions of dollars each year, encourage physical activity and ease traffic congestion."

Lilly added, "It's also a big win for our members—the independent bike shops that supported the tax break so enthusiastically. I'd like to congratulate them for ensuring the smooth implementation of this important public policy initiative."

The announcement comes just as BTAC is preparing to host a Cycling Pavilion at the Toronto Green Living Show, April 25-27. Located in the Direct Energy Centre, the Pavilion will feature the latest bikes and related products for recreation and urban transportation. Participating manufacturers include Batavus, Norco, Opus, Specialized and Trek.

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