The Climate Agreement was presented last month, with a package of measures that must reduce greenhouse gas emissions in the Netherlands by 49% compared to 1990 figures. Mobility plays an important role in the reduction of CO2 emissions. Accordingly, the Climate Agreement contains more than 40 pages dealing specifically with this subject. We outline some relevant measures below.
Pay as you go
The aim is for all new cars to be 100% emission-free by 2030, with options such as hydrogen and electric cars. These vehicles emit no greenhouse gases while driving, keep the air clean, and cause less noise nuisance. However, the preconditions must also be met. In practical terms, this means that it must be as easy to charge your electric car as it is to charge your mobile telephone. This also applies to hydrogen cars.
Another important condition is for mobility to remain affordable and the costs of the transition be fairly distributed, enabling all Dutch people to make the change to zero-emissions cars.
The cabinet expects there to be a continuing reduction in the need for tax incentives for driving electric vehicles. However, there will also be less income from excise duty. This means that we need to carefully consider what the car tax system will look like. One idea is a ‘pay as you go’ system, for example with drivers of electric cars paying a sum per kilometre, otherwise known as ‘road pricing’. Variations on this theme are currently being investigated.
Incentive measures
In addition, a package of measures has been devised to encourage zero-emissions driving, including the following:
In the long run, electric lease car drivers spend more on additional tax liability. The reduced additional tax liability is currently still at 4 percent, but this is set to increase annually, to 8 percent in 2020 and ultimately to 22 percent in 2026. The reduced additional tax liability applies to cars with a purchase value of less than 45,000 euros, and that will be worth less than 40,000 euros from 2021. This is intended to prevent large amounts of subsidy going towards expensive electric cars.
Up until 2025, drivers of electric cars will not have to pay motor vehicle tax (Belasting Personen en Motorvoertuigen, BPM), and from 2025 it will be a fixed amount of 360 euros. Drivers of electric cars will also be exempt from the government part of the motor vehicle tax until 2025, after which they will pay 25% of the standard rate in 2025, and 100% from 2026.
Private drivers of electric cars will receive a purchase subsidy, but the amount is not yet known.
Private market
Leasing companies play an important role in stimulating the use of electric vehicles in the Netherlands. After all, cars in the business market are an important part of the Dutch second-hand market. To initiate the development of a second-hand market for electric cars for private individuals, the cabinet will establish a scheme for the reimbursement of charge credit, a purchase subsidy or a battery guarantee. This will put second-hand electric cars within the reach of private individuals faster.