Dutch cabinet plans €50M subsidy for electric cars in energy package

The Dutch cabinet plans to introduce a subsidy to help people on low and middle incomes buy an electric vehicle, according to ANP sources, following reporting by RTL Nieuws. The proposal would require recipients to trade in their gasoline-powered cars. The government would allocate 50 million euros to the program.

The cabinet reportedly plans to present the measures as part of a broader energy package on Monday. The plan also includes expanding tax incentives for companies investing in green initiatives. The current tax discount for such investments would increase from 40 to 45 percent.

In addition, the cabinet intends to raise the tax-free mileage allowance and allocate funds to an emergency support program for energy bills, according to ANP's sources.

Officials reportedly negotiated the final details with several opposition parties this weekend, as the governing coalition of D66, VVD, and CDA does not hold a majority in the Tweede Kamer. The sources stressed that the final amounts could still change.