The government has announced a number of measures related to increased energy costs. Contrary to what many have called for, there will be no reduction in excise duty on fuels.
Travel reimbursement
Instead, the government wants to increase the maximum untaxed travel allowance from €0.23 to €0.25 per kilometre with retroactive effect to 1 January. For this measure to be effective, the cabinet needs the cooperation of employers. The increase in the untaxed allowance should compensate for a price increase of about 30 cents per litre of fuel.
Measures for companies
From July 1, the motor vehicle tax for entrepreneurs' vans will be halved for six months. A zero rate will apply to lorries during that period.
The Enterprise Finance Guarantee Scheme (GO) will be extended for five years, while the guarantee part of the SME Guarantee Credit (BMKB) will be increased for one year.
An energy efficiency scheme will be introduced for the fisheries sector in the third quarter. The government is releasing €25 million in the budget of the Ministry of LVVN for this purpose.
Funds will be transferred from the Climate and Energy Fund on an accelerated basis to support SMEs in taking energy-saving measures. The Energy Investment Allowance (EIA) will be increased from 40% to 45.5% from 1 January 2027.
Energy saving
To accelerate home sustainability, the government is making money available for the Heat Fund and for the National Livability and Safety Programme. Money will also be freed up for the Subsidy Scheme for Making Home Owners Associations More Sustainable (SVVE) in 2027. Through the National Heat Fund, homeowners can get a loan to make their homes more sustainable, regardless of their income level.
Emergency energy fund
There will be an emergency energy fund for people with low incomes and high energy bills. The amount of support will be linked to the level of energy prices.
Trade-in scheme
There will be a trade-in scheme for old fossil fuel cars in the fourth quarter of 2026. This scheme is a subsidy on the purchase of a used electric car. The traded-in car will then be scrapped. This scheme is aimed at lower income earners.
Off-peak public transport card
While discussing the plans in the Lower House, the cabinet took up the proposal to add an off-peak public transport card for the summer months. This will allow unlimited travel outside peak hours for a fixed monthly fare.
Funding
These measures are paid for by abolishing the start-up deduction for first-time entrepreneurs and by scaling down the small-scale investment allowance (KIA). Furthermore, the excise duty on alcoholic beverages will henceforth be indexed annually. The energy-saving measures and the trade-in scheme for fossil fuel cars will be financed from the Climate and Energy Fund.