Tax-free travel allowance will finally go up next year

May 23, 2022

Kilometer allowance

In 2006 it was decided that employers may reimburse 0.19 euros per kilometer tax-free. However, current fuel prices no longer match the prices of sixteen years ago. Inflation, the corona crisis, war in Ukraine and of course higher excise duties on fuel are now causing sky-high petrol and diesel prices. In the past year alone, the petrol price has risen by 0.90 euros per liter.

No longer adequate

According to various parties, the tax-free travel allowance of 0.19 cents per kilometer is no longer sufficient. The CNV trade union and the Business Drivers’ Association have often called on the cabinet to increase the tax-free travel allowance as soon as possible. The House of Representatives also thought it was time to straighten out the travel allowance.

200 million euros

The coalition agreement states that the tax-free travel allowance would only increase in 2024. Due to the high fuel costs, the cabinet is already responding to the call from the House of Representatives to adjust the compensation. In 2023 and 2024, 200 million euros will be earmarked for the increase. According to the AD, that amounts to an increase of 21 cents per kilometer in 2023 and 23 cents in 2024. The exact amounts will only be determined on Budget Day.

Twice as expensive

According to the Business Drivers’ Association , 21 and 23 cents per kilometer is still far from enough . They have calculated how high the mileage allowance should actually be with the current fuel prices. According to the VZR, a travel allowance of 0.39 euros per kilometer should cover most of the costs for employees.