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Reducing energy bills through VAT

The PVV comes with a bill to significantly reduce the energy bill for households. Political leader Geert Wilders said on the WNL television program on Sunday that the party wants to achieve this in particular by significantly lowering the value-added tax rate.

Because of rising gas and electricity prices, households will spend on average twice as much on energy this year in 2021. And many more people will suffer as a result. The Cabinet is still studying measures to compensate for this, but Finance Minister Sigrid Kaag (Finance) warned on Friday that the space for this was limited.

Energy is subject to the high VAT rate of 21 percent. PVV suggests setting the rate at 0 percent during this “crisis year”. According to WIlders, the average family will pay between 500 and 800 euros less. Then, if it is up to PVV, the power should structurally drop below the low rate of 9 percent.

The PVV also wants municipalities to have more financial scope this year to help the poorest families. Now 200 euros per family is available for this, the party wants to triple that amount to 600 euros. “People who can’t really afford that difference will be fully compensated,” Wilders said.

According to Wilders, the bids will cost 5.5 billion euros. He believes this is easy to achieve, because the Cabinet also sees scope for spending tens of billions on tackling climate change and nitrogen loss in nature reserves. He points out that other European countries are also helping households by lowering the value-added tax on energy.

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