The government has made a mistake that will cause owners of electric cars to pay substantially higher taxes starting in 2026.
For years, the government tried to encourage sales of electric cars. This was supposed to help meet climate goals. For example, you now pay no road tax at all for your electric car.
Because there are now many more electric cars and this costs the treasury a lot of money, the previous administration chose to phase out this rebate. This was to be done incrementally starting in 2025. However, the process is moving faster than previously thought. This has everything to do with a miscalculation on the part of the government.
Owners of electric cars must pay more tax
The original plan was that electric car owners would see a phase-out of their tax break, from 75 percent to 0, starting in 2026. However, the previous administration decided to extend that rebate. In 2026, the rebate would go to 50 percent, eventually winding down to 30 percent in 2030, after which the rebate would end completely.
However, there was a miscalculation in this plan. In addition to the fact that extending the rebate would cost the treasury €1.7 billion, the government threatened to lose an additional €3.8 billion.
The weight of electric cars was not adequately taken into account when calculating the rebate. These vehicles are heavier than their gasoline equivalents. Since in the Netherlands road tax is calculated on the weight of the car, this means that the tax rebate represents a larger amount than for regular cars. This was not taken into account by the previous administration.
Because of this calculation error, the rebate would cost the government 1.5 billion euros more than expected. But that is not the only error: the cabinet also assumed that fewer electric cars would be sold than were actually the case. As a result, the rebate applies to many more owners than originally calculated. That additional use of the tax costs another 2.3 billion, bringing the total to 3.8 billion euros.
Effects on owners and the market
As a result of these mistakes, electric car owners will still suffer. The tax credit is being significantly curtailed to close the budget gap. Instead of a gradual reduction of the rebate – from 75 percent in 2025, to 40 percent between 2026 and 2028, and 30 percent in 2029 and 2030 – the rebate is already going to 25 percent starting in 2026 and disappearing completely in 2030, reports The Telegraph.
This is a major setback for people with electric cars. Although these vehicles are better for the environment, their high weight means they pay significantly more tax than owners of gasoline cars. This can also have a major impact on sales, as the higher cost may deter potential buyers.
Nevertheless, do you still want an electric car? Check out what wonderful models await us soon below.