Dutch tax measures in action plan to cushion economic impact of the Middle East crisis

Key tax measures include: • Increase the tax-free travel allowance for the whole of 2026 by €0.02 to €0.25 per kilometre. • Raise the Energy Investment Allowance (EIA) deduction rate from 40% to 45.5% as of 1 January 2027 (budget unchanged). • Abolish the start-up deduction as of 1 January 2027, with no transitional arrangements. • Temporarily cut the motor vehicle tax rate for entrepreneurs’ delivery vans by 50% from 1 July through December 2026. • Temporarily reduce the motor vehicle tax rate for trucks to zero from 1 July through December 2026. • Introduce a to-be-developed entrepreneur scheme linked to the Small-scale Investment Allowance (KIA). • Index excise duty on alcoholic beverages annually as of 1 January 2027. • Structurally scale back the Small-scale Investment Allowance (KIA) as of 1 January 2027 by adjusting the phase-out rate and shortening the investment band eligible for the maximum deduction. Measures taking effect in 2026 will be implemented via an approving policy decree and later incorporated into draft legislation.