Saturday 10 December 2022

Green power will hurt government finances: advice group

The switch from fossil fuels to green power and declining income from natural gas sales will cost the government billions of euros in lost income, according to the national energy council AER.


‘Fossil fuels currently generate over €35bn for the state a year. We estimate that will be down by €5bn within five years,’ AER board member Kees Wiechers is quoted as saying in Thursday’s Financieele Dagblad.
The detailed figures will come under discussion in the cabinet formation talks, when government finances are looked at, the paper says.
Tax
The Netherlands will be more affected than some other countries by the decline in traditional fuel use because of high taxes. Some 14% of the total tax income of €130m comes from fossil fuels, tax experts told the paper.
A spokesman for the economic affairs ministry said the impact of the switch to greener fuels is being closely monitored.
‘We have noticed the growth in income from environmental taxes no longer matches economic growth,’ he said. ‘This means environmental or other taxes will eventually have to be increased to keep total income stable.’
How should we cope with declining tax income from fossil fuels? Have your say using the comment box below.

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