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Netherlands Announces Energy Relief Package Amid Mideast Dispute Pressure

(MENAFN) The government of the Netherlands has announced a set of economic measures worth nearly €1 billion (about $1.1 billion) designed to help households and businesses cope with rising energy costs linked to instability in the Middle East, according to reports.

As part of the package, the tax-free mileage allowance for employees will increase by €0.02 (about $0.022) to €0.25 (about $0.27) per kilometer, with the adjustment applied retroactively for the full year, Dutch broadcaster NOS reported. Officials estimate this change effectively provides relief equivalent to about €0.30 (about $0.33) per liter of fuel.

The plan also includes targeted support for small businesses, with motor vehicle tax for “grey license plate” vans—commonly used for commercial purposes—set to be reduced by half from July 1 until the end of the year. In addition, truck taxation will be temporarily eliminated over the same period.

To support lower-income households, €195 million (about $216 million) will be directed to an Energy Emergency Fund. A further €180 million (about $200 million) will be added to the national heat fund, which finances home insulation projects and other energy efficiency improvements.

According to the government, more than €600 million (about $665 million) of the package will come from direct spending, while over €300 million (about $332 million) will be covered through tax reductions.

To help finance the measures, excise duties on alcohol will be adjusted upward in line with inflation next year, leading to small price increases for alcoholic beverages.

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