Finance Minister sought to cut Vat on cycles and e-bikes in budget 

Plan did not go ahead due to legislative complexities and the possibility it would encourage other business groups to press for similar Vat reductions

Officials had examined the possibility of reducing the Vat rate to as low as 9% as a way of encouraging the purchase and use of bicycles and e-bikes.

Plans for a significant cut to the rate of Vat on bicycles and electric bikes were dropped at the last minute in the run-up to October's budget.

Officials at the Department of Finance had been working on plans for chopping the rate to 13.5% from 23%, with Finance Minister Michael McGrath eager to have the change implemented before Christmas.