While the new parliament has not yet begun to form, the Dutch car sector has drawn up a tax plan together with coalition partners. “It is better that we do that ourselves than that we wait and see what will come out of the formation.”
It seems a bit early for grand tax plans, but the formation table is actually just a place where agreements can be made without all kinds of parties looking over your shoulder. Once there is a new cabinet and there are plans in a coalition agreement that you do not like, then you have a problem.
So what can you do? Intervene before the plans are actually made. And that is exactly what the Dutch automotive sector has done. A coalition of five parties has put together an extensive proposal and is dropping it off this week in The Hague as a kind of handle during the formation negotiations.
The club consists of RAI Association on behalf of the car industry, Bovag on behalf of the car companies, ANWB on behalf of the private motorist, VNA for the business driver and car lease companies and Nature and Environment for the social side. This party was very necessary to prevent it from being a car party. Because the broader the social support, the happier politicians are. More support means less protest and more political support. Ideal ingredients to quickly introduce a major revision.
What are the proposals?
All measures as the broad coalition likes to see them:
- A prelude to a kilometer charge in 2030, which will be laid down in law to prevent political delay.
- Making the kilometer charge partly dependent on emissions.
- Never BPM for electric cars. The BPM should die with the fuel engine.
- A more progressive BPM that should make new smaller fuel cars cheaper
- As early as 2023 MRB for electric cars, but with a large (kilo) discount. Subsequently, that discount must remain much longer than is currently planned.
- Allow addition for electric cars to increase more slowly than is currently planned. A relapse is already noticeable.
- An MRB for delivery vans that will slowly increase towards 2030. From 2026 also a bonus / malus levy for the purchase of delivery vans.
- Abolition of tax exemption for government vehicles.
- Retain the purchase subsidy for electric cars for private individuals for both new and used. However, a cap on purchase value, no longer an annual maximum subsidy. Less subsidy per car than now.
- Extra attention for behavioral change: things like leasing bicycles, making working from home and online easier, employers making agreements about ZEV in a fleet.
No major shifts
If we list the measures in a row, we actually do not see very hard changes anywhere. “This was conceived to prevent major shifts,” explains Bovag spokesperson Paul de Waal. “In this way there is certainty for companies without the major shifts occurring every time as we have seen in the past decade.” The most notable measures are an MRB levy for electric cars – from 2023 onwards – and an MRB levy for vans with a fuel engine. “They are necessary to get the plan financially covered. But please note, we also argue for a much longer discount on the motor vehicle tax for electric passenger cars, which would otherwise pay the full price from 2026 onwards. ”
One of the most important effects of the plans is that it will become more attractive for private individuals to purchase an electric car, also as an used car. “There is currently a net export of electric cars. We want to change that into a net import. ” The tax plans must apply to a forthcoming cabinet, plus one year. For after that one must be flexible. “You don’t really know how quickly the market and technology will develop by then.” Meanwhile, realistic policy is expected for cars with an internal combustion engine. “Even with extreme stimulation, 80 (!) Percent of the existing fleet will still be provided in 2030 of a fuel engine. By working well with biofuels, a lot of CO2 profit can be achieved there. “
Kilometer tax
Even though the very concrete tax plans only go until 2026, the coalition has also laid down a story for the period after that. The package of measures elaborates on the plans as in the other framework, only everything has not yet been calculated as in the years before, due to the uncertainties for the years that are still so far away. What is certain for the five parties is that in 2030 the Netherlands will have to switch to paying for use, in other words a form of kilometer charge. This will replace the current car taxes, MRB and BPM, but should also provide an alternative income for fuel tax, which currently yields just 8 billion euros per year. Logically, electric cars do not contribute to this (even if there is also excise duty on electricity) and the government can guarantee this income with a kilometer charge.
This movement had been coming for years, and the realization that excise income will soon disappear was even a reason for the VVD to move on this file. According to the coalition, the emissions of a car (both CO2 and business and particulate matter) should be part of the rate, which means that used cars are automatically at a disadvantage. Already an unpleasant idea for people who cannot afford a new car anyway. On the other hand, the supply of used electric cars should already be well underway by 2030.