September 30, 2022

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Cabinet does not want a separate cut in the selective fuel tax, but wants to consider 'all options'

Cabinet does not want a separate cut in the selective fuel tax, but wants to consider ‘all options’

The Cabinet does not support a separate reduction in production duties on gasoline and diesel. However, it is now being studied how and for which groups additional compensation can be obtained due to the rapid rise in energy prices in the Netherlands due to the war in Ukraine. “We are working hard to see how we can make it as bearable as possible for people,” said Finance Minister Kag.

Kag says on the TV show WNL Sunday The Cabinet is “extremely concerned” about very high inflation in the Netherlands. Energy prices are huge. “It affects a lot of people.” The suggested retail price of gasoline is currently approximately €2 and 35 cents.

Specific plans this week

But Minister Kag does not support a temporary reduction in the excise tax on fuel. The government imposes a value-added tax of 21 percent on gasoline and diesel. With such a measure, the motorist gets additional help, but it creates a deficit in the treasury, which means that cuts must be made in other areas, such as education or social minimum assistance, warns the minister. “It sounds easy, but the builder or the baker is not ultimately about how to help him, but as long as there is comfort.”

Kaag believes the Cabinet could come up with concrete plans “this weeks,” but she did not say when. “It won’t be long.”

‘We’re paying for this’

The House also urges quick clarification on additional compensation due to the new price hike, which is now due to Russia’s invasion of neighboring Ukraine. A few months ago, this discussion also started due to the first increases in gas and oil prices. The government has already promised to come up with concrete plans in March to help as many Dutch people as possible with higher energy bills and more expensive groceries.

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GroenLinks on Friday requested that the Emergency Price Act be implemented to temporarily freeze prices.

Minister Cage also said in WNL Sunday The effects of the war in Ukraine will continue. “We are paying for it.”