Cabinet tempers youngtimer scheme overhaul after criticism
The tax age threshold will rise less abruptly, but the proposal must still pass both Houses.
The cabinet wants to phase out the youngtimer scheme more gradually than originally planned. Under the proposal for the 2027 Tax Plan, the threshold would be 17 years in 2027 and 20 years from 2028, rather than rising in one step to 25 years. The Lower House (Tweede Kamer) and Senate (Eerste Kamer) must still approve it.
The youngtimer scheme applies to company cars that are also used privately. In 2026, cars aged 16 and over qualify. The benefit-in-kind tax is then calculated on 35 per cent of the market value, generally the current value, rather than the original list price. That difference can significantly affect the tax burden.
The cabinet initially wanted to restrict the scheme from 2027 to cars aged 25 and over. That step would mainly affect owners and businesses with cars that are old but have not yet been on the road for a quarter of a century. Cars that no longer qualify for the scheme are in principle subject to the regular benefit-in-kind tax based on the list price.
The change of course follows political criticism of the speed with which the scheme was amended. On 31 March, the Lower House adopted a motion by Pieter Grinwis and Henk-Jan Oosterhuis. It called for the jump to 25 years to be abandoned and for a more gradual transition path to be worked out. The motion received 124 of the 150 votes.
Under the new proposal, the scheme will remain available in 2027 for cars aged 17 and over. From 2028, the threshold will be 20 years. Transitional arrangements have been proposed for certain cars that were already being driven by the same user before 2026 and turn 17 in 2027. Under the current explanation, they may continue to qualify for the scheme throughout 2027.
The government says the more gradual path is intended to prevent entrepreneurs and car dealerships from suddenly facing higher costs. According to Stichting Autobelangen, citing figures from the RDC, more than 40,000 fewer company youngtimers were sold between January and May 2026 than in the same period of 2025. That comparison has not been confirmed in this round with a publicly available RDC file and should therefore be treated with caution.
For specialist car businesses, predictability is particularly important. A tax change affects not only the choices of company-car users, but also the value of cars in stock and demand for certain model years. At the same time, a gradual phase-out may achieve the measure’s objective — reducing tax incentives for older fuel-powered cars — less quickly.
The proposal is therefore not a definitive scheme. The Lower House and Senate can still amend or reject the text. Until then, entrepreneurs will remain uncertain about exactly which cars will qualify for the favourable benefit-in-kind tax from 2027 and how the transitional arrangements will ultimately be set out.
One story, several perspectives
What is established
- The cabinet has proposed a more gradual phase-out path for the youngtimer scheme in the 2027 Tax Plan.
- Under the proposal, the age threshold will rise to 17 years in 2027 and 20 years from 2028.
- The Lower House previously called for the jump to 25 years to be abandoned and adopted the motion with 124 votes in favour.
- The Senate and Lower House must still consider the proposal.
Left
Arguments A gradual phase-out prevents small businesses and employees from suddenly facing higher costs. At the same time, the government should invest more specifically in affordable electric alternatives, so that making the transition to more sustainable transport is not feasible only for larger companies and higher-income groups.
Values Climate policy, affordability and a fair distribution of costs.
Consequences A slower path may delay the switch to cleaner cars, but prevents lower-income groups and small businesses from being disproportionately affected.
Centre
Arguments The institutional solution is a predictable transition with clear rules, transitional arrangements and an evaluation of the effects on the market. The tax incentive can remain in place, but should be adjusted step by step so that legislation remains workable and verifiable.
Values Legal certainty, feasibility and prudent budgetary policy.
Consequences A gradual phase-out limits market shocks, while the government will later have to decide again whether the pace is sufficient to meet climate and budgetary targets.
Right
Arguments Entrepreneurs must be able to rely on stable tax rules. A sudden increase in the age threshold could put the inventories, investments and business models of specialist car companies under pressure; the government should therefore be cautious about increasing the tax burden.
Values Property, entrepreneurial freedom, predictability and limited government intervention.
Consequences More time for the transition protects businesses and consumers, but may keep the tax subsidy for relatively polluting older cars in place for longer.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The article’s core is based directly on government information and an adopted parliamentary motion. The sales figures are clearly attributed to Stichting Autobelangen and marked as not independently confirmed.
- confirmed The cabinet proposes raising the youngtimer threshold to 17 years in 2027 and to 20 years from 2028. — This is stated in the explanatory notes from Rijksoverheid and RVO. source
- confirmed The Lower House and Senate must still decide on the proposal. — RVO states that this is a proposal that still has to be discussed by both Houses. source
- confirmed In 2026, the youngtimer scheme applies from the age of 16 and the benefit-in-kind tax amounts to 35 per cent of the market value. — RVO’s explanation describes both elements. source
- confirmed The Lower House adopted the motion on a more gradual path with 124 of the 150 votes. — The voting result is listed on the motion’s page on the Lower House website. source
- uncertain Stichting Autobelangen reports, based on RDC figures, that more than 40,000 fewer youngtimers were sold in January–May 2026 than in the same period of 2025. — The claim appears on Stichting Autobelangen’s website, but was not independently checked here against a publicly available RDC file. source
- confirmed Transitional arrangements have been proposed for certain cars already driven by the same user before 2026 that turn 17 in 2027. — RVO explicitly describes these transitional arrangements. source
Editor's note
It is certain that the cabinet has proposed a more gradual phase-out path and that parliamentary approval is still required. The reported fall in sales comes from an interested party citing RDC figures; no public, independent verification file was available.Sources
- Belastingplan 2027: voorstellen voor beter werkend belastingstelsel en gezonde overheidsfinanciën — Rijksoverheid
- Hogere bijtelling voor oude zakelijke auto (youngtimer) — Rijksdienst voor Ondernemend Nederland
- Motie over een geleidelijker transitiepad voor de youngtimerregeling — Tweede Kamer der Staten-Generaal
- Wat betekenen de wijzigingen in de youngtimerregeling voor jouw auto? — SRA
- Versobering youngtimerregeling raakt automarkt hard — Stichting Autobelangen