JAKARTA - The Dutch government announced a package of assistance worth nearly 1 billion euros (around Rp20.2 trillion) to mitigate the impact of rising energy costs for households and businesses due to the conflict in the Middle East.
As part of the policy, tax-free travel allowances for employees will rise by 0.02 euros to 0.25 euros (Rp5,050) per kilometer and will be retroactive throughout the year, according to a NOS report quoted by ANTAR from Anadolu.
The adjustment is estimated to be equivalent to savings of around 0.30 euros per liter of fuel.
In addition, motor vehicle tax for vans with gray number plates, which are commonly used by small businesses, will be cut in half from July 1 to the end of the year.
Truck tax will also be reduced to zero during the same period.
To support vulnerable households, the Dutch government allocated 195 million euros to the Emergency Energy Fund.
An additional 180 million euros will be allocated to the national heating fund which provides loans for home insulation and energy efficiency improvements.
The Dutch government said more than 600 million euros of the package was in direct spending, while more than 300 million euros came from tax reductions.
To finance the policy, alcohol taxes will be raised in line with inflation next year.
Despite pressure from parliament, the Dutch government chose not to intervene in fuel prices at gas stations because it was considered expensive and had limited impact.
Officials estimate that a 0.10 euro (Rp2,020) per liter reduction in fuel prices will cost the country around 1 billion euros.
The Dutch parliament is scheduled to discuss the proposal on Wednesday (22/4) and a majority of members are expected to support it.
Shipping through the Strait of Hormuz has been disrupted since the US-Israel launched a joint attack on Iran on February 28.
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