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Three charged with taking bribes to provide false French tests for residency cards
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Cycle to work tax break capped
As COP 21 climate talks begin, France’s politicians put €200 annual limit on tax breaks for employees who cycle to work
TAX BREAKS for employees who cycle to work have been capped at a maximum of €200 per person per year.
The total exemption from tax and social charges amounts to €3,80 a week, less than the estimated average €6 calculated when the cycle-to-work payment plan was put forward in March 2014, based on payments of €0,25 a kilometre for a total 5km daily commute.
As well as limiting the total allowance, a late amendment to the bill voted through this week - even as world leaders discussed climate change at the COP21 summit - also said that businesses are not obliged to offer the allowance to their employees.
At the moment, companies must reimburse offer to help paying for employees’ rail or bus season tickets, plus a mileage allowance for those who drive to work.
When Transport Minister Frédéric Cuvillier unveiled the allowance plans for cyclists, he asked volunteer companies to test out a system of reimbursing employees between €0,21 and €0,25 per kilometre as a travel perk in return for social charge exemptions.
The idea was first was proposed in 2012 by MP Philippe Goujon to then-transport minister Thierry Mariani. He suggested a tax-free payment of up to €0,25 a kilometre plus reduced social charges for the company.
Similar schemes in Belgium, the Netherlands, Denmark and Germany have seen the number of people cycling to work increase.
It has been estimated that the cycle trade is worth €4.5billion a year and supports 35,000 jobs in France.