Starting in 2025, the subsidy for purchasing a second-hand electric car will no longer be available in the Netherlands, according to the Spring Memorandum released by the outgoing cabinet. The announcement comes after last year's decision to extend the subsidy until 2029 was reversed.
The Spring Memorandum reveals that a total of 528 million euros were allocated for the purchase subsidy for second-hand electric passenger cars, also known as SEPP, from 2025 to 2029. The extension, previously announced, has now been canceled. Interested individuals have until 27 December 2024 to apply for the subsidy. Currently, more than half of the annual budget has already been granted.
The decision to phase out the subsidy starting next year is attributed to the introduction of a new discounted rate for motor vehicle tax for electric cars. At present, EV drivers are exempt from paying motor vehicle tax. However, under the new plan, this exemption will only apply until 2026, after which a 40 percent discount on motor vehicle tax will be granted to emission-free passenger cars. The government's aim is to ensure that EV owners do not end up paying higher car taxes compared to owners of petrol cars. Motor vehicle tax is calculated based on the weight of the vehicle, and EVs tend to be heavier due to their batteries. The discount percentage will decrease annually until it is completely phased out by 2030.
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