Refueling is already much more expensive in the Netherlands than across the border.
Reducing fuel costs and 800 euros for minimums is not enough to help families with little money in drafty houses. But because Germany and Belgium are also lowering fuel prices, the Netherlands must too. And then the money runs out quickly.
A ‘wholesome’ purchasing power package that ‘untargeted’ lowers the tax on fuel and energy costs, thereby favoring people who drive a lot or fire a lot, ie the ‘rich’. This week, the House of Representatives strongly criticized the government’s plans to dampen the sharply increased prices for the population. It will only be difficult to change much because Belgium and Germany are also cutting fuel prices and the government apparatus is simply unable to implement overly complicated measures.
The criticism of the purchasing power measures did not only come from the left. Other parties also regretted that more money does not end up with the low and middle incomes, especially the people who sit on the couch in drafty houses with a blanket. And there was a fairly widespread fear in the House that municipalities would not be able to pay out the 800 euro energy surcharge in time to the people who need it most. In addition, there is another group that is just above the minimum income that also gets into serious trouble.
Yet there will be little else. Last year, the trees seemed to grow financially into the sky, but due to the war in Ukraine and the resulting economic problems, the pockets appear to be less deep. For the time being, the government is not keen on additional wishes such as lowering the tax on travel allowances.
Most of the billions for the head power will go into lowering excise duties on fuel and energy tax. Belgium and Germany already had cheaper petrol and have also already taken or announced measures to lower prices at the pump. It will therefore be almost unavoidable in the Netherlands what to do about those fuel costs.
During the debate, State Secretary for taxation Marnix van Rij stated that the reduction is necessary because otherwise the Netherlands would price itself out of the market. There are already many people who drive to Germany to be able to fill up a little cheaper. That would become much more if the Netherlands does not dampen prices. There are not many other options left if it all has to be done without an extra grab from the state treasury.