Policy status:In Force
Date Effective:2006
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief, Information and Education>Performance Label>Comparison label, Economic Instruments>Fiscal/financial incentives>Taxes
Policy Target:Transport>Passenger, Energy Sector>Electricity Generation>Fossil fuels (Coal, gas, oil)
Agency:Ministry of Finance

There are various fiscal measures in place that influence the uptake of energy/CO2 efficient passenger cars:

• Passenger Car and Motorcycle tax (Dutch: BPM): The Private motor vehicle and motorcycle tax (Dutch: BPM) is a tax levied on the purchase of new cars. Since 1 July 2006 a new Private Motor Vehicle & Motorcycle Tax regulation (bonus-penalty scheme) came into place aimed at stimulating the uptake of more energy efficient cars. Each new passenger car could receive a reduction on the BPM depending on the car’s energy label. The aim of the scheme was to reward the most energy efficiency cars in their class size with a bonus (A- and B-label cars) on the BPM and to penalise relatively inefficient cars with a surcharge on the BPM (D to G label cars). In 2008 the scheme was adapted by increasing the bonuses and penalties and introducing an additional tax for very energy inefficient cars. Starting in 2010 the scheme has changed into a system in which the level of BPM depends on the absolute CO2 emissions per km of a car. From 2012 onwards the BPM will only depend on the absolute CO2 emission per km of a car.

• Motor Vehicle Tax (MRB). The level of the Motor Vehicle Tax is differentiated by weight of the car. Exemption is provided until 2014 for vehicles with an emissions factor below 110 gr of CO2 per km using petrol and 95 gr CO2 per km using diesel. In 2015 only vehicles with an emission below 50 gr of CO2 per km are exempted from the tax.

• Income tax measures. In the Netherlands leased cars, which are also used for the private purposes of the employee, are seen as part of the income. The employee must pay income tax over cost price including tax. Since 2008 the systems is designed in such a way that car drivers with a lease car are fiscally encouraged to obtain an energy efficient car. This differentiation has influence to shift towards the lease of cars with lower CO2 emissions per km.

Last modified: Mon, 08 Apr 2013 21:25:51 CEST