Cabinet looks at temporary road tax cut due to fuel prices
To accommodate motorists in the energy crisis, the government is looking at temporarily reducing road tax. Insiders confirm this following reports by De Telegraaf.
It is one of the options on the table to compensate for high prices at the pump. A decision will follow later. The cabinet previously listed the options available to accommodate people now that oil and gas prices have risen worldwide. That included increasing the untaxed travel allowance and reducing excise duty on petrol and diesel, but not lower motor vehicle tax.
Car ownership in the Netherlands is taxed based on weight and fuel of the car. There is a reduced rate for electric and hybrid cars. If that tax is lowered by 1 percentage point, the taxman collects some 46 million euros less. According to Nibud, a middle-class petrol car costs about 88 euros per month in road tax.
In Germany, Chancellor Friedrich Merz on Monday 13 April announced an excise tax cut on petrol and diesel of 17 cents per litre. While several countries in Europe have taken measures against high fuel prices, the Dutch government is taking the stance of not wanting to take a hasty decision until now. Reducing excise duty on petrol and diesel is not preferred by the minority government, Prime Minister Rob Jetten already hinted during his weekly press conference: “Because it costs a lot of money, but does not sufficiently help households and entrepreneurs.” The cabinet wants compensation measures to primarily reach those hardest hit by high prices.
Read also:
- ‘Netherlands most expensive for petrol in Europe, but rise relatively limited’
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