October 28, 2020

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Presentation of the CO2 tax invoice for companies on Budget Day

Presentation of the CO2 tax invoice for companies on Budget Day


Photo: ANP

On the day of the budget, the cabinet will present the bill for a CO2 tax from January 1st for the most polluting industry. The measure announced in the climate agreement last year was not delayed, said State Secretary Hans Vijlbrief (Finance) in Berlin after a meeting with his European colleagues.

With the carbon dioxide (CO2) tax on large companies, the cabinet aims to encourage companies to become more sustainable faster. Companies receive an exemption for a certain amount of emissions. A tax is then levied on the excess CO2 emissions. On Tuesday, Budget Day, it will be announced how much the tax will be.

Due to the corona crisis, the CO2 exemption would be higher than actually required in the first few years, but will expire in 2030. Emitting too much therefore costs companies more and more.

The measure is part of the goal of halving CO2 emissions in the Netherlands. Large companies like Tata Steel are strongly against the tax because they already pay for their emissions in the European emissions trading system ETS. The industry also warns of the loss of additional jobs.

Vijlbrief informed his colleagues in Berlin about the upcoming CO2 bill and the planned introduction of the passenger tax from January 1st. Recently, in connection with the corona crisis, Vijlbrief promised the House of Representatives to look into whether January 1st is a good time to do so. At the initiative of the Netherlands, nine EU countries asked the European Commission to draft a law for a European passenger tax at the end of last year.