Higher compensation for private car use and lower fuel excise duties in cabinet Jetten’s plans for BES islands
THE HAGUE – The Dutch cabinet is proposing to increase the tax-free mileage allowance and temporarily reduce the excise duty on petrol in Bonaire, Sint Eustatius and Saba.
Both measures are part of the 2027 Tax Plan, which was presented to the House of Representatives on Budget Day, 15 September. The House of Representatives and the Senate still need to approve the proposals.
The maximum tax-free mileage allowance will increase from $0.20 to $0.22 per kilometre. The increase also applies to certain car expenses and extraordinary costs, and will take effect retroactively from 1 January 2026. Employers may pay their staff the higher allowance tax-free, but are not obliged to do so.
Temporary reduction of excise duties
In addition, the cabinet wants to lower the excise duty on petrol throughout 2027 to ease the impact of high fuel prices. In Bonaire, the proposed reduction is 5.5 cents per litre, while in Sint Eustatius and Saba it is 4.19 cents per litre. If parliament approves the measure, the reduction will be in effect from 1 January to 31 December 2027.
