NL to scrap tax breaks for fuel-efficient cars

26th May 2011, Comments 1 comment

The cabinet will next week discuss a proposal by Deputy Finance Minister Frans Weekers to scrap the current scheme of tax breaks for fuel-efficient cars.

Sources in The Hague have confirmed a report to that effect by the RTL/Nieuws news channel. At present, owners of fuel-efficient cars pay no purchase tax and less road tax. These tax breaks were intended to substantially increase the number of fuel efficient cars.

However, the scheme has been so successful that it’s becoming too expensive for the government to continue. The exemption of the purchase tax will be scrapped as of 2013. The reduced road tax rates will disappear one year later.

Only extremely clean cars, such as electric cars which emit less than 50 milligrams of CO2 per kilometre, will remain exempt from road tax.

© Radio Netherlands Worldwide

1 Comment To This Article

  • MT posted:

    on 26th May 2011, 11:06:23 - Reply

    So ultimately its not about the environment but about the revenue ;) typical government