The government is to simplify the rules surrounding the use of company bikes – e-bikes in particular – in an effort to make the corporate perk more attractive.

Currently, just 10,000 people have a company bike but there are some 700,000 company cars on the Dutch roads, the finance ministry said.

Junior finance minister Menno Snel says the current complicated rules for company bikes – and the fear of paying extra tax – deter companies from offering bikes to their staff.

In particular, users have to keep a careful record of how much they use their bike for company and private matters and how much they spend in repairs and maintenance.

‘Cycling is healthy, good for the environment and reduces traffic congestion,’ Snel said. ‘Nevertheless, a lot of people still take the car to get to work.’

Snel is now in talks with lease car companies, the cycling union and road users lobby groups to work out the new system which he hopes will come into effect in January 2020.

According to the AD, one of the suggestions on the table is the introduction of a 4% tax rate on company bikes. This means company bike users would pay tax of 4% over catalogue value of their bike.

The groups involved in the discussions estimate this would generate €6m a year for the tax office and save €44m a year through better air quality, lower absenteeism and improved health, the paper said.