Cabinet wants to temporarily lower fuel and energy tax

Cabinet wants to temporarily lower fuel and energy tax

The government wants to limit the decline in purchasing power due to high inflation, in particular through excise duties on fuel and a temporary reduction in VAT on energy. Sources in The Hague confirm this following a report from the US. NAMEI

Gas and electricity are currently subject to a high VAT rate of 21%, but will temporarily fall below the low rate of 9%.

Reducing excise duties on petrol and diesel is still under discussion. The measures would come into effect on 1 July for an initial period of six months.

We do not yet know how much the package will cost, because the elaboration of some measures has yet to be discussed in the cabinet. But Minister Karien van Gennip (Social Affairs) had previously hinted that the amount would be the same as the 3 billion euros planned last year to compensate for the rising energy bill.

People with an income equal to or slightly above the social minimum were previously promised 200 euros as compensation for the ever-rising energy bill. According to insiders, this amount will be increased by several hundred euros. The government also wants to help households save energy, for example by providing subsidies for home insulation more quickly.

The Central Planning Bureau (CPB) released new purchasing power estimates earlier this week. In the worst-case scenario, people will earn an average of 3.4% less this year as energy and fuel prices skyrocketed in Ukraine after the war. When he took office, he promised that the purchasing power of the cabinet would remain stable.

Source: NU