New tax breaks to be introduced in the Netherlands due to rising fuel prices

The Dutch government will introduce temporary tax breaks designed to ease the impact of rising fuel prices. This was reported by the Reuters news agency on April 20.

This step was taken against the background of the Middle East conflict and the resulting energy crisis.

"The government has allocated about €1 billion for measures including temporary tax cuts for public transport passengers, truck drivers and fishermen, but not the reduction in fuel taxes that many have requested," the article says.

The measures taken are also aimed at supporting homeowners in reducing energy consumption and providing targeted assistance to the poor in paying energy bills.

The Amsterdam authorities stressed that there is no immediate shortage of fuel in the country, as European reserves of oil, diesel fuel and kerosene are expected to last until the end of 2026. Nevertheless, European countries have recently faced a reduction in fuel supplies and rising prices due to restrictions on the movement of ships through the Strait of Hormuz.

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Why is the energy crisis caused by the conflict in Iran affecting Eastern Europe more?

Chief Economist of the International Monetary Fund (IMF) Pierre-Olivier Gourincha warned on April 14 about the threat of a major energy crisis due to the war in Iran. According to Gurinshi, before the outbreak of the armed conflict, the IMF was going to raise its forecast for global growth, but the consequences of the war "exceeded the influence of basic factors."