Contesting the penalty - the 62.5% bicycle import tax that no one knows about
Friday, March 14th, 2008This is not a ploy to get you reading this blog! This really happens. Over 90% of bicycles on the road in the UK are imported from outside the European Union. Only a very small percentage are actually built here, despite the impression you are given by manufacturers.
Every sinlge bicycle imported from outside the EU is subject to two forms of taxation, culminating in an extraordinary 62.5% tax, before VAT! The first charge that the importing company has to pay is called an ‘anti-dumping’ duty. This is a charge which is put on any item (in this example bicycles) which is being imported from outside the EU, but could be manufactured from within. This is the penalty for not buying from inside the European Union. The penalty we have to pay is 47.5% of the value of the bicycle.
The second charge is known as ‘import duty’, which in the case of bicycles is 14%. We agree with the need for import duties; there are mountains of paperwork that follow importing and these costs need to be covered. But what we will not accept is the fact that combined, these charges mean that we have to charge you 62.5% MORE for your bicycle. Is this helping encourage getting people out of cars and onto bicycles? No.
At Capital Cycles, we have done everything within our power to make our bicycles the most affordable on the market, whilst also being very well built, fully accessorised and of course, delivered free to your door. But know this: instead of increasing our profits, we PLEDGE to reduce the cost of our bicycles by 47.5% if this exhorbitant fee is removed. Just imagine how many more people will be able to get on the road! Help us make this happen now, join the Capital Cycles anti anti-dumping campaign today.
What will they tax us for next, growing trees?
