According to the 2013 tax rates of the Icelandic Directorate of Internal Revenue, employers and employees can make an agreement of a maximum ISK 7,000 (USD 54, EUR 41) tax-free monthly payment for using the bus, cycling or walking to work.

Photo: Páll Stefánsson/Iceland Review.

Director of Cyclists in Iceland (Hjólafærni á Íslandi) Sesselja Traustadóttir told Morgunblaðið that the initiative was important for people’s lifestyle. “This is a tremendously healthy investment for the Icelandic society.”

However, Sesselja criticizes that the wage improvement initiative hasn’t been covered much. “There has been no information of it at the Icelandic Confederation of Labor and people have never heard employers talk about this but this is something that can make a tremendous difference. If we can free ourselves from extra vehicles from our home, free ourselves from the costs of operating one car, that is a lot of money.”

In other news, the Icelandic Road Administration will spend ISK 750 million (USD 5.8 million, EUR 4.34 million) on the construction of cycling paths in the Reykjavík and Suðurnes districts over the next three years. Municipalities will contribute the same amount.

Planning began last year and construction of several paths have begun. Around 20 paths are planned, ruv.is reports.

Click here to read more about the new cycling paths.

ZR