Factsheet for measure
NL-2022-14/2235
–
Updated
– measures in Netherlands
Reduction in VAT on energy and excise duty on petrol and diesel
Verlaging btw op energie en accijns op benzine en diesel
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Country
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Netherlands
, applies nationwide
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Time period
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Temporary, 01 April 2022 – 30 June 2023
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Context
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War in Ukraine
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Type
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Other initiatives or policies
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Category
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N/A
– Support for energy bills
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Author
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Thomas de Winter (Panteia) and Eurofound
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Measure added
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10 May 2022 (updated 12 March 2023)
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Background information
To compensate households and companies for rising energy prices, the government cut the rate of VAT on energy (natural gas, electricity and district heating) from 21% to 9% for nine months from 1 April 2022. The measure is designed in such a way that it benefits all citizens. The lower VAT on energy and lower excise duty on petrol and diesel brings down energy bills and fuel costs.
Other measures which are part of the set of measures to partly compensate for rising energy costs for households include
Extra energy allowance for lower incomes
,
Tax reduction on the energy bill and reduction of tax rate on electricity in 2022
and
More money for households to take energy-saving measures
.
Content of measure
This measure is intended to bring down energy bills for households with average consumption by around €200 over the period of nine months. The government also reduced excise duty on petrol and diesel by 21%, from 1 April 2022 until the end of the year. This lowered the price of petrol by 17.3 cents per litre and that of diesel by 11.1 cents per litre.
Costs of the total package of temporary measures (of which reduction of VAT on energy and excise duty on petrol and diesel is a part) is estimated to cost a total of €2.8 billion. The government will fund the package in part from extra gas revenue. It will also use remaining funds from the Brexit Adjustment Reserve (BAR). A maximum of €364 million in BAR funds is available.
Updates
The following updates to this measure have been made after it came into effect.
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02 January 2023
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From 1 April 2022, the government has reduced the tax on unleaded petrol, diesel and LPG to compensate for the increase in energy prices. The tax cut will be extended by 6 months until 30 June 2023. In the second half of 2023, the rate will slowly go up again.
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Use of measure
The measures are directly translated into tax benefits for citizens. No further usage data available.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Applies to all citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
-
Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
No involvement.
Sources
