2019 Tax Plan – Outline of car taxes and environmental taxes
2019 Tax Plan - Budget Day (Prinsjesdag)
The following lists the measures proposed in the 2019 Tax Plan in respect of car taxes and environmental taxes.
20 September 2018
Taxes on cars and motorcycles
The current statutory regulation provides for the grant of a refund of the private motor vehicle and motorcycle tax (“BPM”), if requested, if cars are used for public or taxi transport for 90% or more. Effective 1 January 2020, this refund possibility will be abolished to create a financial incentive for this group to purchase environmentally friendly cars.
Motor vehicle tax
The 2019 Other Tax Measures include a clarification about using registration numbers for the levy of motor vehicle tax. As part of the General Data Protection Regulation and some recent Supreme Court judgments, the State Secretary deems it necessary to improve the way in which the Tax Administration’s powers in this area are laid down in law.
Heavy vehicle tax
The environmental differentiation in the Heavy Vehicle Tax Act will be updated. As a result, domestic and foreign trucks that produce more pollution will be paying more tax. The cleanest trucks will continue to be taxed at the current rate. The measure will likewise apply in other countries where tax is levied based on the Eurovignette. The entry into force will depend on the ratification in those other countries.
Taxation based on environmental principles
The government proposes to adapt the energy tax and waste tax to increase the incentive to reduce pollution. As part of this, the balance between the CO2 emission and the rates in the first energy tax bracket will be improved. This means the rate for electricity will be lower while the rate for natural gas will be raised. The rate of the first bracket for electricity will be reduced by 0.72 eurocent per kWh. The regular rate of the first bracket in the energy tax for natural gas will be raised by 3 eurocents per m3.
Another proposal regards a reduction in the energy tax, from EUR 308.54 to EUR 257.54. The tax reduction is a fixed amount and for each connection this will be deducted from the energy tax due upon the supply of electricity.
Finally, the government proposes to increase the waste tax rate for dumping and burning waste products. This measure aims to make it more attractive to recycle waste. The rate will be EUR 31.39 per 1,000 kilograms, instead of EUR 13.21.
Reduction of the landlord levy to make rented houses more sustainable
If the government gets its way, landlords who are subject to the landlord levy will be rewarded for improving the energy performance of existing rented houses. The measure proposed provides for a reduction of the levy if certain conditions are met. Qualification for the levy reduction requires houses to be improved by at least three Energy Index Categories. What’s more, renovations should lead to an Energy Index of up to 1.4 (label B or better).
Landlord levy rate
The landlord levy rate will be reduced by 0.03 percentage point. This is due to the increased tax burden of housing corporations and the government’s ambitions on the housing market.