Cycling organisations said on Friday the government’s decision to stop giving a tax break on company bikes will hit bike retailers hard.

The loss of the tax break means fewer people will cycle to work and will hit sales, the organisations say.

Junior finance minister Eric Wiebes said earlier this week that workers who are given a bike by their employer will have to pay tax on it from next year. However, smartphones, laptops and tools will be exempt.

Bovag says some 20% of the bikes sold in the Netherlands are officially company bikes.