Energy taxes on gas and electricity (incl. VAT, in €/kWh and €/m3) – Source: CBS
The graph above shows the recent changes in the rate of energy taxes on electricity and gas consumption. The rates given above include a standard VAT of 21% and are the usual rates which apply to consumers whose use lies below 170 000 m3/year or 10 000 kWh/year. Consumers who exceed these benchmarks are taxed according to a degressive system.
The graph depicts both taxes on gas and electricity, as well as the so-called ‘opslag duurzame energie’ (ODE, sustainable energy storage) tax. The ODE is a tax on the consumption of electricity and gas which is used to raise funds in order to finance and stimulate the production of renewable energy.
As can be seen, the tax on gas is considerably higher than that on electricity. What’s more, the former has consistently risen in recent years, while the latter – before the energy crisis of 2022 – was decreasing. This is a result of the government’s choice to tax electricity less, so as to stimulate electrification. On the other hand, a higher tax on gas provides an incentive to save energy. The difference between the two tax rates is continuously increasing, despite the considerable increases in January 2023. However, the ODE for both electricity and gas has gradually increased, such that the gradual decrease in the tax on electricity has been negated.
The tax on electricity was substantially decreased during the recent energy crisis. Further, between July and December 2021, the VAT rate was decreased from the usual 21% to 9% for both electricity and gas. This explains the temporary dip in the tax on gas consumption.
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