Environmental taxes and fees, revenues by taxpayer; national accounts

Table explanation

Description topics

Total environmental taxes and fees

Environmental tax revenues

Revenues of taxes that aim to reduce environmentally damaging activities through a price increase. The revenues of these taxes flow into the general budget and are not dedicated to financing environmental measures. Examples of environmental taxes are excise duties on petrol, motor vehicle tax, energy tax and tax on passenger cars and motorcycles.

Environmental taxes on products

The following product-related taxes are environmental taxes: tax on groundwater, tap water, waste, petrol, energy and packaging. These come under the environmentally based tax act (Wet belastingen op milieugrondslag).

Total environmental taxes on products

Waste tax

Waste tax is charged for waste dumped in landfills. Its objective is to stimulate the most environmentally friendly way of waste processing. Waste tax is one of the product-related taxes that come under the environmentally based taxes.

Fuel tax

Tax charged on businesses extracting, producing or importing coal, and subsequently use or supply them as fuel. Its objective is to reduce environmental pollution and energy use. The tax is not charged on coal used to generate electricity. Since 2004 fuel tax has been largely integrated in the energy tax and the excise duties on mineral oils. It still exists for coal. Fuel tax is one of the product-related taxes that come under the environmentally based taxes.

Tax on electricity and gas use

Tax charged for the use of energy (gas, electricity and certain oil products). The energy tax is one of the product-related taxes that come under the environmentally based taxes. As of 2004 energy tax is the new name for regulating energy tax (REB). Since 2004 fuel tax has been largely integrated in the energy tax.

Emission allowances

Emission allowances consist of government revenues from the auctioning of emission permits for the EU Emission Trading System (EU ETS). Companies that emit large amounts of CO2 are obliged to participate and have to surrender an emission allowance for every tonne of CO2 they emit. The Dutch government receives revenues from auctioning of ETS permits since 2011, but the system has been around for longer. The total of emission allowances is in line with the government figures from the National Accounts. The use of emission allowances per industry is based on the balance of the number of allowances surrendered and allowances received for free. Participating companies receive part of the allowances for free to compensate for the 'carbon leakage’ effect, the rest they have to buy on the market. For practical reasons, an average price was used. Actual costs for companies may differ because costs and revenues from emission allowance trading have not been taken into account.

Tap water and groundwater taxes

Tap water tax:
The Netherlands has a tax on tap water. The tax is paid by business and households whose water is supplied through waterworks, regardless of whether it is of drinking water quality. Its objective is to reduce water use. The tax on tap water is one of the product-related taxes that come under the environmentally based taxes.
Groundwater tax:
Tax charged for the abstraction of fresh groundwater from the soil, through a construction as meant in the Water act. The tax is paid by water companies, agricultural holdings and manufacturers, for well point drainage and by private individuals abstracting large quantities of water, for example for a swimming pool. Abstractions for certain goals as well as small abstractions are exempted for the tax. The groundwater tax is charged with the intention to reduce groundwater abstraction. The tax encourages the economic use of depletable resources. The tax on groundwater is one of the product-related taxes that come under the environmentally based taxes.

Tax on packaging

Tax charged to the producers or importers of the packaging or packages products. Its objectives are to reflect the degree of environmental pollution of packaging in the market price, to reduce the volume of packaging used and to bring about change in the kinds of packaging materials used. The tax on packaging is one of the product-related taxes that come under the environmentally based taxes. It came into effect on 1 January 2008.

Flight tax

Tax charged on air passengers leaving from an airport in the Netherlands. This tax is charged to the operator of the airport. The tax came into effect on 1 July 2008 and was abolished on 1 July 2009.