Netherlands Defers LNG Fuel Tax

| The Netherlands, Rotterdam

Vox LNG Refueling InstallationThe Netherlands Government has waived a previously announced increase in excise duty on LNG.  The decision has been welcomed by the government formed National LNG Platform. It lays the foundation for the breakthrough of LNG as a new, cleaner fuel for road transport in the Netherlands. The Platform has a “50-50-500 objective”: at least 50 barges, 50 sea-going vessels and 500 trucks running on LNG by 2015.

In 2012 excise duty on LPG was increased. Because of the link between LNG and LPG, both gaseous fuels, this would also increase the excise duty on LNG  from 18 to 31 cents per kilo. The National LNG Platform declared the consequences would be disastrous for new developments, a view upheld by a survey conducted by the Ministry of Economic Affairs.

The study, published in July, made clear the strategic importance of LNG to the Dutch transport sector: LNG as a transport fuel for road transport, inland and coastal water could bring an extra EUR 2.7 billion in additional economic growth and 8,000 worker years through to 2030. As a result the tax increase has been deferred for at least five years.

Platform President Gerrit van Tongeren said:  “The introduction of LNG as a transport fuel puts the Netherlands ahead of other European countries. We now have the opportunity to expand on this lead. Following a period of insecurity, transport companies in the Netherlands now have clarity. For them, this removes the main obstacle to switching to LNG!”

The National LNG Platform will continue its lobbying for an appropriate excise policy for LNG, questioning the validity of the tax-pairing with LPG. The Motor Vehicles Memorandum (‘Autobrief’) and the revision of the EU Energy Taxation Directive provide opportunities to engage in discussions with the government in order to achieve a structural and appropriate tax regime for LNG.

National LNG Platform
The National LNG Platform connects businesses and governments, who are working on the introduction of liquefied natural gas as an alternative transportation fuel in the Netherlands.

(Source: National LNG Platform)

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