The Hague, Mar 12 (IANS): The Dutch government has announced a 2.8 billion euro ($3.05 billion ) package of aid measures to counter rising energy prices and persistent inflation.
Social Affairs and Employment Minister Karien van Gennip said that a one-off energy allowance for low-income families would be increased from 200 euros to 800 euros, reports Xinhua news agency.
In addition, Value Added Tax on energy will be reduced from 21 per cent to 9 per cent, while excise duty on petrol and diesel will be reduced by 21 per cent.
In a letter to Parliament, van Gennip said the government is taking the measures to help people with low and middle incomes to cope with rising energy prices and persistent inflation.
Inflation could rise sharply to 5.2 per cent this year, mainly due to higher energy prices.
Meanwhile, purchasing power is expected to fall by 2.7 per cent on average, the Minister added.