Tightening of CO2 tax for industrial firms

Industrial firms that emit too much CO2 will start paying more taxes, starting on January 1^st, 2023. The share of emissions that they don’t have to pay taxes for (the exempted emissions) will decrease from that date going forward. By doing this the government wants to encourage firms to emit less CO2.

Goal: additional reduction of 4 megatons of CO2 emissions by 2030
The government wants to encourage industrial firms to increase sustainability in their production processes. The goal is an additional reduction of CO2 emissions of more than 4 megatons by 2030. This is in addition to the 14.3 megatons decrease of CO2 emissions agreed upon in the Climate Agreement for 2030.

Proposal: exempt part of CO2 tax will be reduced
The share of CO2 emissions industrial firms do not have to pay taxes for will be reduced from January 1^st, 2023 onwards. Firms that emit a large amount of CO2 will pay more taxes on balance. Since January 1^st, 2021, industrial firms have been paying a CO2 tax. The aim is to encourage companies to emit less CO2 during their production processes. To give companies time to adjust their processes, they receive a tax exemption for part of their emissions. The share of emissions that will be exempted from taxes will be reduced from January 1^st, 2023.

Rate of CO2 tax not increased
The rate of the CO2 tax will not change on January 1^st, 2023. In 2024, the government will determine whether the CO2 tax rate should be raised from January 1^st, 2025 onward.

State of affairs bill
This proposal is part of the 2023 Tax Plan. If the Dutch House of Representatives (Tweede Kamer) and the Dutch Senate (Eerste Kamer) approve this proposal, it will take effect on January 1^st, 2023.

 

Source: rijksoverheid.nl