Energy & environment

Abolition of netting arrangement

End customers with a small installation currently receive the same rate for electricity fed into the grid (supply costs, energy tax and VAT) as for the electricity consumed. In 2024, this is a tax advantage of around € 0.167 (energy tax and VAT) per netted kWh. This advantage will be cancelled. The government proposes that as from 2027, electricity fed into the grid should no longer be offset against supplied electricity. It is being monitored that compensation for the electricity fed into the grid is transparent and reasonable. This compensation cannot be negative.

Take note!

When calculating the yield of solar panels, take the cancellation of the netting scheme as of 2027 into account.

Energy tax reduction

The tax reduction for electricity will be increased retroactively to € 521.81 up to 1 January 2024. This measure replaces the scale down of the reduced rate for shore-side electricity, which would result in an insignificant advantage of up to 3.6 euro cents per year for electricity consumers. By increasing the tax reduction, the advantage is given to consumers in a simpler way, without any additional burden on energy suppliers and the Tax Administration. The tax reduction will likewise be increased for the period 2025 to 2033.

Greenhouse horticulture carbon emissions levy

The Fiscal Climate Measures (Greenhouse Horticulture) Act (Wet fiscale klimaatmaatregelen glastuinbouw) makes three important changes. Firstly, the definition of energy companies is amended: only companies supplying at least 75% of their heat generated with natural gas to greenhouse horticulture farms are liable for tax. Secondly, the tariffs of the carbon emissions levy are being reduced with a new tariff structure that is reviewed every year according to current data. Finally, enforcement of the carbon emissions tax on greenhouse horticulture has been transferred from the Minister of Agriculture, Nature and Food Quality (landbouw, natuur en voedselkwaliteit, LNV) to the Tax Administration.

Take note!

In the spring of 2025, the government wants to decide on an extension of the European Emissions Trading System (ETS2) to the greenhouse horticulture sector and its impact on the carbon emissions levy.

Adaptation of tax rules for greenhouse horticulture

The tax rules for natural gas and electricity in greenhouse horticulture will be adapted. At present, an exemption exists for electricity generated with an efficiency yield of at least 30% and by means of cogeneration (combined heat and power). These exemptions will be limited and will, in future, be based on the electrical power of installations. Installations with more than 20 megawatts of electrical power become liable for tax, while medium-sized installations remain exempt. This ensures a more uniform control and application of the rules.

Tip

Check if an installation falls within the new reference value to avoid unexpected taxation.

Prolongation of low fuel excise duties

The reduction in excise duties on unleaded petrol, diesel and LPG, which began on 1 April 2022, will continue to remain in force until 31 December 2025. This measure keeps the rates equal to those of 1 July 2023 and prevents indexation, which means that the reduction is more broad-based than before. This policy aims to reduce fuel costs for households and businesses and gives them more time to adapt to changing economic circumstances.

Take note!

If prolongation is not effectuated, the rates could increase significantly in 2025. The total amount is currently € 0.18473 (unleaded petrol), € 0.11964 (diesel) and € 0.04362 (LPG).

Reduction of energy tax on natural gas

The energy tax on natural gas is being reduced for consumption up to 170,000 m³. This reduction starts at 2.8 euro cents per m³ in 2025 and rises to 4.8 euro cents per m³ in 2030. Households with an average consumption of 1,050 m³ will save around € 29 per year in 2025, rising to around € 50 in 2030. Businesses will also benefit from lower costs through this adjustment in tax rates.

Separate tariff for hydrogen

As from 1 January 2026, hydrogen will be taxed at a lower rate than natural gas for purposes of energy tax. This will provide an incentive to use hydrogen as a renewable energy source and supports the energy transition. In addition, the exemption for producing hydrogen via electricity has been clarified and extended. These measures incentivise development of the hydrogen market, create new opportunities for economic growth and employment, and strengthen the Netherlands’ competitiveness.

Take note!

The reduced rate will be reviewed by 2030 at the latest. In the event of an adverse evaluation, the separate rate will be cancelled on 1 January 2031.

Abolition of coal tax exemption

Companies importing, transporting or storing coal must pay coal tax. Revenues from coal tax are low. The government proposes to abolish the exemptions for dual use and the non-energy efficient usage of coal by 2027. The refund scheme too, with which any non-applied exemptions are reclaimed, will be abolished. This scheme will still remain available for old cases for five years after its abolition. The objective of abolishing the exemptions is twofold: to reduce coal usage in the Netherlands and to generate more tax revenue.

Take note!

Apply for a coal tax refund in good time before the scheme is abolished.

Levy for waste incineration plants

Due to various changes in the law, waste incineration plants (afvalverbrandingsinstallaties, AVIs) have been covered both by the definition of AVI and by the definition of greenhouse gas installation since 2024. To avoid confusion about the carbon emissions levy, AVIs are now specifically treated as AVIs in order to avoid double regulation and ambiguity about tariffs.

Take note!

For 2024, the ambiguity remains. The more favourable tariff for greenhouse gas installations will apply for waste incinerator plants for 2024.

Clarification of waste taxation

The in/out method for purposes of waste taxation is clarified. Carbon emissions released through the stack after incineration may not be deducted from the tax base for purposes of waste taxation. The in/out method specifically provides an incentive to prevent waste incineration and pollution, which is made more explicit by this change in the law.

AVI correction factor for carbon emissions levy

The carbon emissions levy for industry, which has been in force since 2021, is being raised with the introduction of a waste incinerator plant (AVI) correction factor. This measure will reduce the number of dispensation rights for waste incineration plants (AVIs) by 1 Mton in 2030, which will intensify the incentive to reduce carbon emissions. The correction factor will gradually be introduced as from 2026, allowing the sector to adapt. After 2030, the correction factor will remain in place to support the broad-based objectives of the carbon emissions levy: reducing greenhouse gases and being conducive to the circular economy.

Take note!

AVIs should prepare in good time for the stricter carbon emission rules and take measures to reduce their carbon emissions.

Plastic levy, diesel tax, and flight tax

There are also several tax measures in the framework coalition agreement that are not included in the 2025 Tax Plan. The introduction of a circular usage plastic levy, the reintroduction of red diesel for agriculture, and a differentiation in flight tax based on distance of travel. These measures will be elaborated at a later stage because they are complicated and, according to the government, require a careful policy pathway and a balanced parliamentary debate.

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