Ministers to discuss cutting tax on fuel and energy


Ministers will on Friday discuss reducing taxes on fuel and value added tax on energy in an effort to shore up spending power following mounting inflation, sources have told broadcaster NOS.

They will also discuss increasing the one-off payment to low income families, perhaps to as much as €800, the sources said.

In total, the package, which will come into effect on July 1 if agreed, will cost the treasury €2.3 bn and will run for at least six months.

National statistics office CBS said on Thursday that inflation had reached 6.2% in February, and the government’s macro-economic think-tank has said spending power will drop by an average of at least 2.7% in 2022, thanks in part to rising energy prices.

Around half the cost of petrol in the Netherlands is down to tax, as is 40% of the cost of diesel.

According to the AD, the plan involves cutting value added tax on fuel from 21% to 9%.

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