Factsheet for measure
NL-2022-1/2221
–
Updated
– measures in Netherlands
Tax reduction on energy bill and reduction of tax rate on electricity
Gedeeltelijke compensatie stijgende energierekening
Background information
To compensate citizens and businesses for the rising energy prices, the government is taking various measures to alleviate higher energy prices for households. This measure includes an extra tax reduction on energy bills and a reduction of the tax rate on electricity in 2022.
Other measures to partly compensate for rising energy costs for households include
Extra energy allowance for lower incomes
,
Reduction in VAT on energy and excise duty on petrol and diesel
and
More money for households to take energy-saving measures
.
Content of measure
This measure thus addresses affordability. The support consists of:
-
Lower tax on electricity in 2022. This will save an average household over €150 (including VAT).
-
Extra discount on energy taxes in 2022. Households and companies will therefore pay €265 (including VAT) less tax.
This amount differs per household. It depends on the energy consumption of the household. The tax credit on the energy bill will be increased by €230 including VAT. The tax rate on electricity (first bracket) will be lowered by 8.4 eurocents including VAT.
While introducing the measure, the government explained that it only has direct influence on the tax part of the energy bill, and that “the sharp increase of the energy bill, due to the rising prices on the gas and electricity market, can therefore only be partially limited by the government.” The government allocated a total of €2.7 billion for the compensation of households and €0.5 billion for companies.
A household with average energy consumption will receive a discount of over €400 (including VAT) on the energy tax in 2022. On average, a household consumes 1,170 m3 of gas and 2,384 kWh of electricity annually.
The emergency fund remains open for households earning up to 130% of the minimum income if their energy expenses exceed 8% of income or up to 200% if they spend more than 10%. This fund has been extended to March 2024 with additional contributions from both the government and energy providers, totaling €24 million.
Updates
The following updates to this measure have been made after it came into effect.
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07 February 2023
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Vulnerable households with high energy bills can turn to the Temporary Emergency Energy Fund from 7 February 2023. The Emergency Fund will pay part of the energy bill for eligible households from October 2022 to March 2023. Households could apply for Emergency Fund support for the entire period from this date. So the end date has been moved from 31 December 2022 to 31 March 2023.
|
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09 September 2022
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The energy discount turns out to be €225 instead of €265 mentioned earlier. This is because after the decision to increase the refund, the government also reduced the VAT on energy from 21% to 9% between 1 July and 31 December 2022. Because the discount is calculated inclusive of VAT, the amount for 2022 is €40 lower.
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Use of measure
All citizens eligible, tax reduction is automatically applied.
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:
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Social partners jointly
-
Main level of involvement: Peak or cross-sectoral level
Involvement
No involvement in designing and implementing the measure, for monitoring see 'views'.
Views and reactions
Social partners, in particular trade union FNV, called on the Government to opt for more specific measures targeted at people with lower incomes, rather than this generic measure. They argued that a generic measure benefits many citizens who do not need it, and is not providing enough support for those in real need.
Sources
