NETHERLANDS, March 21 –
Information merchandise | 21-03-2022 | 19:38
The federal government is introducing new supplementary measures to cushion the impression of rising power costs and chronic inflation on low- and middle-income earners. Inflation might rise considerably this yr, probably reaching 5.2%. That is due primarily to greater power costs. Buying energy is predicted to fall by 2.7% on common. The federal government is due to this fact elevating the one-off power allowance (energietoeslag) for individuals on incomes across the degree of social help profit to €800. It’s also reducing the speed of value-added tax (VAT) on power from 21% to 9%, and the excise obligation on petrol and diesel might be minimize by 21%. Lastly, the federal government is bringing ahead spending of €150 million, initially earmarked for 2026, to assist low-income households take energy-saving measures. These measures have been introduced in a letter to the Home of Representatives from Karien van Gennip (Minister of Social Affairs and Employment), Sigrid Kaag (Minister of Finance), Carola Schouten (Minister for Poverty Coverage, Participation and Pensions), Micky Adriaansens (Minister of Financial Affairs and Local weather Coverage), Rob Jetten (Minister for Local weather and Vitality Coverage), and Marnix van Rij (State Secretary for Tax Affairs and the Tax Administration).
Table of Contents
Improve in one-off power allowance for individuals on low incomes
On the finish of 2021, the earlier authorities introduced it could put aside €3.2 billion to cut back power tax. It additionally offered plans for a one-off power allowance of round €200 per family to mitigate the impression of upper power prices on individuals on incomes across the degree of social help profit. Older individuals on low incomes may even be eligible for the allowance. This one-off cost will now be raised to €800 per eligible family. The federal government and municipalities will get this cash to the individuals involved as quickly as they’ll.
Discount in VAT on power and excise obligation on petrol and diesel
The federal government plans to chop the speed of VAT on power (pure fuel, electrical energy and district heating) from 21% to 9% for six months from 1 July this yr. This measure will deliver down power payments for households with common consumption by round €140 over the interval. The federal government additionally proposes lowering excise obligation on petrol and diesel by 21%, from 1 April 2022 till the top of the yr. This may decrease the value of petrol by 17.3 cents per litre and that of diesel by 11.1 cents per litre.
More cash for households to take energy-saving measures
On the finish of final yr, the earlier authorities determined to earmark €150 million to assist households make their houses extra sustainable. A further €150 million is now being offered to take further energy-saving measures. Cash can also be being put aside for a marketing campaign to lift individuals’s consciousness of the alternative ways they’ll save power.
Caribbean a part of the Netherlands
€5 million is being made out there to mitigate the impression of rising power costs within the Caribbean a part of the Netherlands. Detailed plans might be introduced as quickly as attainable.
Protecting the prices
The non permanent bundle of measures will have an effect on the finances. This extra bundle will price a complete of €2.8 billion. The federal government considers it essential that this price is roofed correctly, to keep away from passing on the invoice to future generations. The federal government will fund the bundle partly from further fuel income. It’ll additionally use remaining funds from the Brexit Adjustment Reserve (BAR). A most of €364 million in BAR funds is obtainable.
