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Starting in 2027, possible additional business lease benefit on EVs via payroll taxes

May 9, 2025

The plans in brief

The main goals of the Green Growth plan are as follows:

* Encouraging Sustainable Energy Production and Climate Transition (SDE++)

Removal of bottlenecks

Minister Hermans: “With this package we are taking concrete steps to ensure that our country becomes strong and more independent. Our country becomes strong when we stand on our own feet, with energy from nearby, a strong economy and a strong industry. To make this happen, I focus on creating the right conditions and removing bottlenecks. I work toward a clear goal where we do not take measures that turn out not to be feasible, but realistically look ahead and do what is necessary to achieve that goal together.”

Making it easier to choose electric car

In the mobility sector and the built environment, the cabinet is also opting for measures that it says are a logical fit with what is already underway. For example, the cabinet wants to make it easier for people to choose an electric car. A standardization in the business leasing market will make it more advantageous for employers to choose an electric car.

Standardizing business leases by 2027

A total of 85 million euros would be available for that standardization business lease by 2027. The plan is as follows: “The leasing market will be stimulated from 2027 via payroll tax for use of electric transport for business travel. Following political decision-making, coverage for this measure will be taken from the Climate Fund. At the end of 2025, a proposal is expected from the EC for European standardization of the lease market. If, in the direction of the Spring Memorandum 2026, it appears that part of the national standardization can be dispensed with as a result, the technical coverage will be further examined and any changes will be included in the Tax Plan 2027. Should fewer funds be needed for this purpose, they will flow back to the Climate Fund (with a maximum of €85 million) and remain available for making mobility more sustainable.”

MRB weight correction

Furthermore, there will also be an MRB weight correction in the period 2026 through 2028. The weight correction in motor vehicle tax (MRB) will be increased from 25% to 30% for the period 2026 through 2028 so that fossil and electric passenger cars will be taxed equally in the coming years.

Scrappage scheme older car off the table

Furthermore, the government documents also mention a measure on a scrappage scheme where an older, fossil car (emission class 1 to 4) is scrapped and a replacement premium is given for the purchase of a fully electric car (EV), thus increasing the share of (used) electric cars in the Dutch car fleet and thus reducing CO2.

This scheme is only accessible to households that both belong to the group with an income in the bottom 50 percent of the Netherlands and own an older fossil car. By focusing only on lower incomes, the scheme contributes to an equitable climate transition.

Over the lifetime of the scheme, 112,000 households could benefit. The TNO report “The energy transition and the risk of transport poverty” (TNO 2024) also mentions a similar size. The entire target group consists of about 1.1 million households of which about 3-4 percent are looking to buy another (used) car each year. These are households that both meet the income requirement and own a compliant car. 120 million would be available for this measure.

The measure contributes to the ingrowth of electric transport and targets the lowest half of Dutch incomes. Because of the co-financing and the limitation to the bottom half of incomes, the measure seems efficient. PBL is also positive about the measure. Yet politicians seem less enthusiastic. It is therefore expected that this plan will be off the table and the funds will be used for other mobility measures.