Budget Day 2025 and the 2026 Tax Plan mainly confirm the policy previously pursued for the automotive sector. There are no major surprises, but the tax measures underline the structural decarbonisation of the vehicle fleet. Examples include the phasing out of tax benefits for electric cars, the legal anchoring of the BPM decarbonisation and the introduction of a pseudo-final levy for fossil fuel lease cars. In this update, we explain the relevant proposals. For an overview of other tax measures announced on Budget Day 2025, please refer to our general Budget Day page.

Car taxes

Excise duty reduction on fuel as of 1 January 2026

The government plans to extend the current excise duty reduction by one year. Under this proposal an excise duty reduction would apply to petrol, diesel and LPG until 31 December 2026. In addition, the government suggests not applying an inflation adjustment to fuel excise duty in 2026, meaning that the temporary excise duty reduction of 2025 would continue to apply. The aim is to offer citizens compensation for the high fuel costs. The following rates have been proposed:

  • Petrol: €0.79 (normal rate: €0.94)
  • Diesel: €0.52 (normal rate: €0.64)
  • LPG: €0.19 (normal rate: €0.23)

From 2027, when the excise duty reduction expires, the following excise duty rates have been proposed:

  • Petrol: €1.0021
  • Diesel: €0.6543
  • LPG: €0.2364  

Our comments

  • The Budget Day documents confirm that the government will further reduce the tax benefits for electric driving. No new incentives are planned, and the tax treatment of electric vehicles is becoming increasingly similar to that of conventional vehicles. At the same time, the pseudo-final levy is expected to encourage employers to accelerate the transition of their business (lease) fleets to electric driving.
  • The Budget Day documents provide little further detail on a long-term vision for the future of the Dutch car tax system. Although the earlier outline letter of July 2025 contained three lines of thinking – including a kilometer charge, a reform of BPM into a name-based vehicle tax, and a reform of the MRB based on vehicle surface area – the 2026 Tax Plan lacks concrete details or policy intentions in this area. This seems to be partly due to the caretaker status of the cabinet. Further decision-making on structural reforms will therefore be postponed for the time being.

Contact  

After reading this update, would you like further information on one or more topics? Or are you interested in a no-obligation introductory meeting? Please contact your Loyens & Loeff adviser or one of our advisers from the Automotive Team. We would be happy to help you.