Dutch Tax Policy Report And Energy Sector

In our earlier news item, we highlighted the recently published tax policy report from a Dutch independent working group consisting of top public service officials. This report focuses on possible improvements to the Dutch tax system, including measures to address climate and environmental challenges. In this update, we reflect on these policy recommendations.

According to the report, taxes are considered an effective instrument - if part of a good policy mix - to discourage polluting behavior by pricing the negative externalities of economic activities. Primarily, this gives polluters an incentive to change their behavior and reduce polluting production. The tax measure can also allocate the generated revenue for other purposes, such as funding expenditures or reducing other tax burdens.