Energy Taxes


In The Netherlands fuels and energy are taxed. All fuels, heat and electricity are taxed on the base of a value added tax (VAT) of 17.5%.

In addition, an environmental tax is applied to fuel gas, coal and oil. This tax for:

   natural gas:                   NLG/m3       ECU/m3
      small-scale use             0,02155      0,01026
      large-scale use (<10 min)   0,02155      0,01026
      large-scale use (>10 min)   0,01400      0,00667

                                   NLG/ton     ECU/ton
   coal                             23,38       11,13
   fuel oil                         32,33       15,4

                                  NLG/liter    ECU/liter
   domestic fuel oil               0,0277       0,01319
Looking at taxes on fuels, we see that in fact only oil is taxed. But because gas prices are based on oil prices, these taxes influence gas prices to the same extent. Hence the actual tax on fuel, expressed in ct/m3 natural gas equivalent, is as follows:
                                  NLG/m3        ECU/m3
   gas, small user
        via domestic fuel oil      0,090         0,043
   gas, large-scale user
        via fuel oil               0,02          0,012
   fuel oil                        0,026         0,012
   domestic fuel oil               0,090         0,0043
   coal                            0,0           0,0
Apart from taxes there are other impositions on fuel. A small consumer of gas, for example, is assessed with the COVA imposition (to finance the storage of domestic fuel oil), BTW (VAT), the ((Branstoffenbelasting)) imposition (environmental tax) and the MAP imposition (to finance the distributors environmental plan).
Total of impositions (January 1995)
                                    NLG/m3         ECU/m3
    indirect: tax                  0,09030         0,0430
    via domestic fuel oil: COVA    0,01190         0,0057
    direct:  BTW                   0,0735=         0,0350
             Brandstoffenbelasting 0,02155         0,0103
             MAP (approx.)     ca. 0,00700     ca. 0,0033

    Total                      ca. 0,20425     ca. 0,0973
For a small user's gas price (including impositions) of 49.1 ct/m3 (0.234 ECU/m3) this means a 42% share of impositions.

The MAP imposition is levied on end user prices of natural gas and electricity. It is not levied on the heat price, because the MAP imposition on gas includes that on the heat price. This gives the heat distribution companies more financial scope to extend the heat delivery networks. In this way an extra environmental advantage is achieved.


Environmental Protection