Dutch government to cut energy taxes amid soaring prices

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THE HAGUE, The Netherlands (AP) – The Dutch government is planning a multibillion euro package to help households cope with soaring energy bills, a minister said on Friday. The Netherlands is the latest European country to seek to cope with the effects of soaring electricity and gas prices.

Prime Minister Mark Rutte’s interim administration plans to cut energy taxes, which would save the average household around 400 euros ($ 463) per year, said Secretary of State for Economic Affairs and the Government of Canada. Climate Dilan Yesilgöz-Zegerius to journalists in The Hague.

Earlier this week, the executive branch of the European Union advised the 27 EU member countries to adopt tax cuts, state aid and other measures to help households and businesses to overcome the impact of high energy prices.

After months of economic instability linked to the coronavirus pandemic, the European Commission wants a rapid and common response to mitigate the effects of the rise in prices, in particular for people living in poverty or on low incomes.

EU officials say 20 member countries have already taken or are planning to take steps to ease the financial pressure. A trade union organization said last month that nearly 3 million European workers could not afford to turn on the heating in their homes.

Among the countries that have taken action, Spain reduced energy taxes, abolished a 7% tax on electricity production, reduced the energy tariff for consumers from 5.1% to 0.5% and reduced the sales tax on home energy from 21% to 10%.

Yesilgöz-Zegerius said the Dutch measures would affect all gas bills, not just those of people who are struggling to pay them, as the government wanted to find a quick and easy way to implement the measure.


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