The Dutch government is preparing the new Income Tax Act, due tocome into effect on 1 January 2001. One objective of thenew taxation system is to promote sustainable economic developmentthrough greater emphasis on environmental levies.

Dutch consumers who buy energy-efficient appliances for theirhouseholds or take energy-saving measures in their homes will beable to get a financial premium from energy companies and hencereduce their energy bills. The premium will be paid only toconsumers who buy an appliance that meets the highest level ofenergy efficiency in the EU labelling system. These premiums areexpected to be financed with revenue from increased energytaxes.