Dutch Small Businesses Show Little Interest in Government Energy Measures – Watch the Video on VRT NWS

The Dutch government’s recent energy relief package has drawn sharp criticism from business leaders who argue the measures fail to deliver meaningful support for smaller entrepreneurs and overlook critical needs in the hardest-hit sectors.

Erik Ziengs, chairman of Ondernemend Nederland (ONL), stated that entrepreneurs “are totally not waiting” for the Cabinet’s steps intended to help the business community. He argued the package works out especially badly for smaller businesses because the government is reducing the small-scale investment deduction and abolishing the starter’s deduction to finance the measures.

Ziengs also called the further increase in alcohol excise duties incomprehensible. “Alcohol is already much cheaper abroad, just like fuel, and tobacco. The prices here are already so high that even more people will cross the border to Germany and Belgium to refuel and do their shopping there. Notice now entire streets with an app group in which people take turns driving to Germany to stock up on all kinds of products,” he said.

The rise in the untaxed travel allowance from 23 to 25 cents per kilometer provides no real relief, according to Ziengs. “Many companies have long promised a higher allowance to their employees, based on the price at the pump. If you give a higher allowance than those 25 cents, it falls under special remuneration, and you get an extra tax assessment on top of that. That is unreasonable and simply not fair,” he said.

The Dutch government has announced almost €1 billion in measures to compensate householders and motorists for soaring fuel costs in the wake of the Middle East war. Commuters will be able to claim an extra two cents a kilometre for travel expenses in their annual tax return, while road tax will be cut by 50% for commercial users and suspended altogether for delivery lorries from July 1.

The cabinet is also allocating €195 million to the energy relief fund to support the poorest households and committing an extra €180 million to a loan facility for homeowners to fund sustainability measures such as better insulation. Finance minister Eelco Heinen has also allocated €50 million to a subsidy fund for owners of older petrol and diesel cars who scrap them in favour of an electric vehicle.

However, the Netherlands continues to resist following neighbouring countries that have cut or capped fuel pump prices. Germany last week announced a cut to fuel duty worth 17 cents a litre, which would bring petrol prices down below €2 and diesel to around €2.10, while in Belgium the average petrol price is €1.87, with diesel costing €2.33. The average price in the Netherlands is currently €2.26 for a litre of petrol and €2.28 for diesel, according to the ANWB.

The government will fund the measures by raising duty on alcohol and abolishing the higher income tax threshold for startup businesses from 2027.