Saturday 04 December 2021

More electric cars hit the Dutch roads – thanks to tax breaks and subsidies

Photo: Odi Busman

Dutch motorists bought 38% more electric and hybrid cars last year, according to new figures from national statistics agency CBS. Most – 63% – were fully electric, which entitled their owners to tax breaks.

By the beginning of this year, there were 273,000 electric cars on the Dutch roads but they still account for just 3% of the total Dutch fleet.

Almost two thirds of them are company cars but more private owners bought a fully electric car last year, thanks to additional government subsidies.

The sale of electric cars almost halved in the first three months of this year, following changes in the tax rules for company cars, car association RAI said in April.

In total, 4,545 electric cars were sold in the first three months of the year, down 48% on the same period in 2020.

In 2020, company car drivers had to pay income tax on 8% of the value of cheaper electric cars, but that has gone up to 12% this year. For company cars worth over €40,000, the add-on is 22%, the same as for diesel-powered vehicles.

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