Opposition parties accuse government of lying about lower gas tax

Opposition parties in parliament are annoyed that the government seemingly lied about cuts to the tax on gas. In his climate package in April, Minister Rob Jetten for Climate and Energy suggested that the gas tax would be lowered. But in practice, there is a good chance that most households will see the tax increase, NU.nl reports.

“The Cabinet presented a climate package with great fanfare that would turn out fair,” PvdA parliamentarian Joris Thijssen told NU.nl. “It turns out that the so-called tax cut is nothing more than calling off a tax increase that would take effect in 2025.”

For this year, the tax on gas up to 170,000 cubic meters consumption is 49 cents per cubic meter. “The Cabinet is introducing a reduced rate up to a certain gas consumption,” Jetten said in a letter to parliament. But the figures he sent with the letter show something else.

The government is adding an extra tax bracket for gas consumption. From 0 to 800 cubic meters, the energy tax will remain at 49 cents per cubic meter. In the next bracket, from 800 to 170,000 cubic meters, the tax will increase to 67 cents per cubic meter in 2025. As the average household uses about 1,200 cubic meters of gas per year, the gas tax will increase for many people.

A spokesperson for the Ministry of Economic Affairs and Climate told NU.nl that there is a reduction compared to a previously proposed increase. The government scrapped that increase in the latest proposal. The spokesperson said that the government also hasn’t decided exactly where the second tax bracket will start. They expect an announcement on Budget Day in September.

GroenLinks isn’t against taxing gas more heavily, as the measure should stimulate sustainability, parliamentarian Suzanne Kroger said. “But we are very concerned about the fact that the Cabinet is letting the first bracket go up to 800 cubic meters,” she said. “That means that many households with average consumption are confronted with a much higher energy bill. And that in times when groceries are already incredibly expensive due to high inflation.” Kroger also expects that the higher tax will particularly affect tenants in poorly-insulated homes.

JA21 leader Joost Eerdmans called the increase in tax in recent years “a punishment” for gas consumption. “It affects almost everyone since 90 percent of homes have a natural gas connection.” According to him, the government is trying to trick the population with the extra gas tax bracket. “After all, a reduced rate on paper is of no use to you as long as the rate doesn’t go down in practice!”

Coalition parties CDA and VVD will wait until the announcement on Budget Day before passing judgment, they told NU.nl.

The Tweede Kamer, the lower house of the Dutch parliament, is debating the climate plans with Jetten on Tuesday afternoon.