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The Netherlands Enacts Temporary Tax on Excess Income of Electricity Producers

31 July 2024

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Approved Changes

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Netherlands

On 24 July 2024, the Netherlands published the Temporary Inframarginal Electricity Tax Act of 17 July 2024 for the introduction of a temporary tax on excess income of electricity producers. Regulations for the implementation of the temporary tax were also published on the same day. The tax is in line with Council Regulation (EU) 2022/1854 and is levied at a rate of 90% on the income of electricity producers exceeding prescribed exempt amounts per MWh. The exempt amount is generally EUR 130 per MWh, although higher exempt amounts of EUR 240 per MWh and EUR 285 per MWh apply for...