car news

Trade union CNV: increase mileage allowance as soon as possible

March 12, 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.

Driving unaffordable

It is therefore becoming unaffordable for more and more people to take the car, while not everyone can work from home. In the Netherlands there are 4.3 million employees who drive business kilometers with their own car. These employees without a company car or fuel card now have to dig deep into their pockets to get to their workplace. After all, they will be reimbursed the petrol price of 2006. The CNV trade union and the Business Drivers’ Association believe that the cabinet should take action now.

Increase mileage allowance

An increase in the mileage allowance has been planned for some time, but according to experts it is coming too late. Only in 2024 will the amount per kilometer go from 0.19 to 0.23 euros. To keep travel to work affordable, the CNV union wants to bring this plan forward. Piet Fortuin, chairman of the trade union CNV. “We have had that 19 cents for many years, which is far too little given the rising fuel prices.” But the proposed increased amount is actually still too low to absorb the current price increase of fuel, Fortuin admits.

Twice as expensive

The Association of Business Drivers has calculated how high the kilometer 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. The VZR believes that employees should give more generously, but the problem is that everything above 0.19 euros is currently taxed by the government. If the cabinet uses the extra excise and VAT revenues that come in from the high petrol price directly to increase the tax-free kilometer allowance, we will have come a long way…

Also read: The 10 cheapest gas stations per province (and in the Netherlands)