The vehicle tax should bring in more in 2023 despite the exemption for electric cars

The vehicle tax is expected to bring in more than 6.3 billion euros next year, reports the Central Bureau of Statistics (CBS). That is 220 million euros more than this year.

Provincial revenues are growing relatively faster than central government revenues. The revenue gaps per province are very different.

In particular, the vehicle tax brings in more for the provinces

The road tax consists of two parts, a national part and a provincial part. Based on the state budget, Statistics Netherlands anticipates an amount of around 4.5 billion euros for the first part. That is 3.5 percent more than this year.

However, Statistics Netherlands notes that the road tax exemption for electric vehicles has a dampening effect on expected revenues. More and more electric cars are driving on Dutch roads. Electric cars are exempt from vehicle tax until 2024.

67 million euros additional income

Compared to this year, the federal states can expect 67 million euros in additional revenue from motor vehicle tax next year. This adds up to more than 1.8 billion euros in 2023. Statistics Netherlands attributes this increase to higher tax rates. Provinces are also considering more cars on their roads. The road tax is an important source of revenue for the provinces, as the revenue can be used freely.

Road tax revenue varies greatly by province

However, yields differ between provinces. For example, next year car tax revenue will increase the most in South Holland, while Flevoland will see the largest decrease. According to Statistics Netherlands, this difference is mainly due to the tariff increase in the first province, in addition to the size and composition of the vehicle fleet in South Holland.