FIRST CHAMBER HAS YET TO AGREE

Favourable LPG tax rate retained for now

The relatively favourable motor vehicle tax rate for LPG drivers is not expected to be scrapped from 1 January 2026. The Lower House voted against this part of the Tax Plan following an amendment by MP Henk Vermeer (BBB).

BOVAG writes in a post on its website that it is happy that this part of the 2024 Tax Plan will not go through. “Abolition of the relatively favourable G-3 rate of motor vehicle tax is counterproductive for the environment. We are happy that this will be reversed.” LPG emits lessCO2 and particulate matter and is cleaner than petrol, for example.

Passenger cars

The LPGS-G3 rebate scheme will remain in place after 2026 for passenger cars whose registration records include the fuel type CNG, LNG or the fuel type LPG with the type designation ex-factory, G3 or R115 installation. The Netherlands has nearly 100,000 LPG drivers. The Lower House co-sponsored Vermeer’s amendment because it is expected that abolishing the rebate scheme could prompt LPG drivers to switch to petrol. This goes against the objective of greening cars.
While the amendment aimed at preserving the current tax rate has been adopted by a parliamentary majority – and means the Tax Plan has been amended on this point – the Senate has yet to vote on it.

This article was automatically translated from the Dutch language original to English.

Author: Jacques Geluk

Source: MobilityEnergy.com