Cabinet not in favor of excise duty reduction for fuel: Kaag

The Cabinet is unlikely to approve an excise duty tax cut on petrol and diesel fuel, NOS reports. A reduction in the VAT imposed on fuel would negatively impact other social services funded by the tax, but the Cabinet is working to come up with other relief measures, said Minister of Finance Sigrid Kaag on Sunday in the television program WNL.

The suggested retail price of petrol is approaching two euros and 35 cents. Kaag noted the Cabinet is “hugely concerned” about the high inflation and soaring energy prices in the Netherlands, according to NOS.

However, Kaag is not in favor of a reduction in the 21 percent VAT the government levies on petrol and diesel. She explained this would lead to budget cuts in other essential areas, which could ultimately prove unhelpful to people struggling financially.

“It may sound easy, but the baker or construction worker does not care in the end how he is helped, as long as there is relief,” Kaag said.

Kaag said the Cabinet would come up with a concrete plan within the next few weeks. However, she did not name a date. "We are working very hard to see how we can make it as bearable as possible for people," she said.

The Cabinet previously promised to present concrete plans in March to help Dutch people struggling to pay high energy and grocery bills. GroenLinks asked Friday for energy prices to be temporarily frozen.