Economical cars push down revenues from provincial surtax

20/12/2012 15:00

The twelve Dutch provinces expect to collect 1,451 million euro from the surcharge on motor vehicle tax in 2013. This is 5 million less than in 2012. It will be the first time that revenues from this provincial surtax decrease since its introduction in 1981. The main reason for the decrease is the increasing popularity of economical cars. 

Expected revenues from provincial surcharge on motor vehicle tax

Expected revenues from provincial surcharge on motor vehicle tax

Decrease caused by economical cars

Revenues from the provincial surtax are dependent on the motor vehicles registered in a province. Not only the number of cars is relevant in this respect, but also the weight and the environmental burden of individual vehicles. Revenues more than doubled between 2000 and 2009. In the last few years the increase was small and this has now turned into a decrease. At the moment drivers do not have to pay any motor vehicle tax at all for the most economical cars. As more and more economical cars have been sold in recent years, their share has been increasing. And as a result, total income from the surtax will fall in 2013.

Not all provinces expect a decrease, however. Half the provinces are still confident revenues will increase. One reason for this is that seven provinces are to increase the rate of the surtax next year.

Change in rate and revenues of surcharge on motor vehicle tax, 2013 versus 2012

Change in rate and revenues of surcharge on motor vehicle tax, 2013 versus 2012

Surtax revenues from North Holland to North Brabant

In the province of North Holland, revenues from the surtax will fall by more than 7 percent, while in the province of North Brabant they will rise by nearly 8 percent. The main reason for this is the relocation of a car lease company from North Holland to North Brabant, as a result of which this company will pay its surtax to the province of North Brabant. In addition, North Brabant is to raise its surtax rate by 1.8 percent, while in North Holland the rate will remain unchanged.

Arlen Hoebergen