The cabinet is not in favor of a separate excise duty reduction on petrol and diesel. However, it is now being examined how and for which groups extra compensation is possible due to the rapidly rising energy prices in the Netherlands due to the war in Ukraine. “We are working very hard to see how we can make it as bearable as possible for people,” said Minister of Finance Kaag.
Kaag says in the TV program WNL on Sunday that the cabinet is “hugely concerned” about the very high inflation in the Netherlands. She calls the energy prices huge. “It affects a lot of people.” The suggested retail price of petrol is currently almost 2 euros 35 cents.
Concrete plans this week
But Minister Kaag is not in favor of a temporary reduction in excise duty on fuel. The government levies 21 percent VAT on petrol and diesel. With such a measure, a car driver is given extra help, but he creates a deficit in the treasury, which means that cuts would have to be made in other areas, such as education or assistance to social minimums, warns the minister. “It sounds easy, but the construction worker or baker is ultimately not about how he is helped, but as long as there is relief.”
Kaag thinks that the cabinet can come up with concrete plans “these weeks”, but does not mention a date. “It will not be long.”
‘We pay a price for this’
The House of Representatives is also urging rapid clarity about additional compensation due to the new rise in prices, now due to Russia’s invasion of neighboring Ukraine. A few months ago, this discussion also started because of the first price increases for gas and oil. The cabinet already promised to come up with concrete plans in March to help as many Dutch people as possible with their higher energy bills and more expensive groceries.
GroenLinks asked Friday for the implementation of the Emergency Prices Act to temporarily freeze prices.
Minister Kaag further said in WNL on Sunday that the effects of the war in Ukraine will continue. “We pay a price for this.”
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