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No excise increase: Netherlands clears the way for LNG in road transport
pondělí, 14. října 2013
The Dutch Government has recently waived an increase in excise duty on LNG. The plans announced during the State Opening of Parliament (Prinsjesdag) show represent a reversal of the earlier announced increase of the excise duty on LNG. The National LNG Platform, an initiative connecting companies and government authorities, welcomes the decision, as it provides the basis for the breakthrough of LNG as an alternative, cleaner fuel for road transport in the Netherlands.
In 2012, the coalition agreement included an increase of the excise duty on LPG. As a result of the link between LNG and LPG, both gaseous fuels, this would automatically imply an excise increase on LNG, from 18 to 31 cents per kilo of LNG. According to the National LNG Platform, the consequences for new, innovative developments would be disastrous. As NGVA Europe reported earlier, in the past few months, a study that was published in July and conducted on the instructions of the Ministry of Economic Affairs provided insight into the possible economic impact of the introduction of LNG as a transport fuel for road transport, inland waterway transport and coastal shipping: € 2.7 billion in additional economic growth and 8,000 man years between now and 2030. The proposed excise increase would have put a stop to this promising development. Intensive discussions with the government on alternatives ensued. The new plans delay the increase that was planned in the coalition agreement for at least five more years.
Platform chairman Gerrit van Tongeren stated: ‘The introduction of LNG as a transport fuel puts the Netherlands ahead of other European countries. We now have the opportunity to expand on this lead. Following a period of insecurity, transport companies in the Netherlands now have clarity. For them, this removes the main obstacle to switching to LNG!’ The National LNG Platform will remain committed to the development of an appropriate LNG excise policy. The current equal treatment of LNG and LPG lacks any clear foundation. The Motor Vehicles Memorandum (Autobrief) and the revision of the EU Energy Taxation Directive provide opportunities to engage in discussions with the government in order to achieve a structural and appropriate tax regime for LNG.
In the ‘Rhine and Wadden Green Deal’, the private and public sectors work together to enable the accelerated development of this innovative application of LNG into a mature fuel option. Apart from economic aspects, this alliance also addresses safety aspects and the environmental impact of LNG. These are important conditions as well for a smooth and unambiguous licence-granting process.
National LNG Platform
The National LNG Platform connects companies and government authorities who are committed to the introduction of liquefied natural gas as an alternative fuel in the Netherlands. The objective is to ensure that by 2015, at least 50 inland navigation vessels, 50 seagoing vessels and 500 trucks will be powered by LNG.
For further details you are welcome to contact Monique van Dongen, +31 (0)6-15 87 03 77 / firstname.lastname@example.org
Source: National LNG Platform
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