The Netherlands, one of the biggest plug-in markets in Europe, is going to gradually decrease the incentive for all-electric cars.

Recently, the Dutch government announced the planned increase of the benefit-in-kind (BiK) tax to push BEVs to the standard level of 22% by 2026.

BiK for BEVs:

2018: 4%

2019: 4% up to a maximum of €50,000 (22% for the amount above)

2020: 8% up to a maximum of €45,000 (22% for the amount above)

2021: 12% up to a maximum of €40,000 (22% for the amount above)

2022: 16% up to a maximum of €40,000 (22% for the amount above)

2023: 16% up to a maximum of €40,000 (22% for the amount above)

2024: 16% up to a maximum of €40,000 (22% for the amount above)

2025: 17% up to a maximum of €40,000 (22% for the amount above)

2026: 22%

Higher BiK means that the popular company car — used by employees but also for private purposes — will be gradually taxed higher.

As we already saw in case of the premium models during the switch from 2018 to 2019, sales of BEVs are expected to significantly increase in the fall of 2019 and decrease in early 2020. A similar situation will play out multiple times in the future until the incentive totally disappears and stabilizes.

The planned increase for a car that costs €50,000:

BiK in 2019: €2,000

BiK in 2020: €4,700

BiK in 2021: €7,000

BiK in 2022: €7,000

The planned increase for a car that costs €40,000:

BiK in 2019: €1,600

BiK in 2020: €3,200

BiK in 2021: €4,800

BiK in 2022: €6,400

The planned increase for a car that costs €30,000:

BiK in 2019: €1,200

BiK in 2020: €2,400

BiK in 2021: €3,600

BiK in 2022: €4,800

Hat Tip to Benz!!!