Finnish bike shop survives despite tax change slashing sales

Antti Mäkikallio’s bike shop in Rovaniemi remains open despite a 30 percent drop in sales after the government removed a tax benefit for employer-provided bicycles, Yle reports.

Mäkikallio, owner of MTB Center, had predicted a wave of bankruptcies when the tax exemption was scrapped. Nearly a year later, his business has stabilized, though he acknowledges operating in a different market.

“Things have balanced out since last autumn, but we’re in a different business reality now,” he said.

Sales of electric bikes, which accounted for most employer-provided bicycles, have been hit hardest. Nationwide, electric bike sales fell 36.6 percent last year, while conventional bike sales dropped 15 percent, according to the Finnish Sports and Outdoor Association.

The tax exemption was removed for all employer bike agreements signed after April 24, 2025, with existing contracts retaining the benefit until their agreed end date.

While a few specialized retailers have closed, the feared mass bankruptcies have not materialized. Some businesses have adapted by introducing new financing models, though the employer bike market has shrunk significantly.

Veli-Matti Kankaanpää, CEO of the Finnish Sports and Outdoor Association, warned the tax change could have long-term public health consequences by reducing cycling rates.

“This isn’t just about bike shops—it’s about people’s mobility and well-being,” Mäkikallio added.