The cabinet is allocating 200 million to increase the tax-free travel allowance. According to those involved, that is enough to increase the tax-free kilometer allowance in 2023 and 2024 from 19 cents per kilometer to 21 cents first and then 23 cents.
Employers and the House of Representatives had requested the extra compensation. It should ease the pain somewhat now that fuel prices have gone through the roof as a result of the war in Ukraine. Commuting has become more expensive as a result.
Now employers can reimburse 19 cents per kilometer without employees having to pay tax on it. The cabinet already wanted to increase this compensation to 23 cents per kilometer during this term of office. So that has been brought forward.
Military support
In addition, more than two billion is needed to receive Ukrainians who have fled their country. The cabinet has released that amount in the Spring Memorandum. The document made public on Friday also shows that the cabinet has now provided military aid to Ukraine for 73 million euros. That money went to the supply of military goods, drones and field hospitals, the cabinet said.