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German excise reduction makes price difference with the Netherlands one of the largest in the EU

The difference between the Netherlands and Germany has not been that great in the past 17 years, calculated Gelderland broadcaster.

“In fact, you can’t compete with Germany on fuel price,” says Tim Schoenmakers of the Tank Stations Association (BETA). Schoenmakers is concerned about customer loss for the gas stations at the border. “The customer looks at the price and goes elsewhere.”

Dutch trade associations seized the opportunity of the German reduction to make politicians enthusiastic about a new reduction in excise duty. On April 1, the Dutch government also lowered the petrol excise tax by 17 cents per litre.

‘The rich benefit’

At the time, a wide range of economists pointed out that excise and tax cuts on energy are not an effective way to alleviate the pain of higher energy prices for the lowest incomes. “With this, the cabinet mainly reaches the middle and high incomes”, said ING chief economist Marieke Blom, for example at the time against NOS.

Investico . investigative journalists counted that the wealthy Dutch benefit most from the lower excise duties. More than a third of the tax benefits go to the richest 20 percent. Only 7 percent of the benefit ends up in the poorest 20 percent.

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