More on this story

Politics

Cabinet saved over tax plan

2 sources

The cabinet had faced mounting pressure over its tax plan, with reports describing a possible budget crisis and tensions over securing parliamentary support. A later report said the cabinet was saved in the dispute over the plan. Only one report identified two Volkskrant readers as having saved the cabinet.

Tax, Benefits & Cost of Living

Dutch cabinet delays Box 3 reform in revised tax plan

26 sources

The Dutch cabinet approved and sent a revised tax plan for 2027 to the House of Representatives without a prior agreement securing a parliamentary majority. The package includes €1.5 billion in purchasing-power measures, drops the proposed €347 million freedom contribution for next year, retains the deduction for specific healthcare costs and postpones a higher VAT rate on flowers. It also proposes additional spending on police, prosecutors and AI-related plans. The cabinet said it was seeking backing from parties on both the left and right, but support remains uncertain. The planned Box 3 system based on actual returns has been delayed by one year following highly critical advice from the Council of State. The government now aims for introduction in 2029, while allowing for implementation in 2028 only if feasible. The Council of State had advised withdrawing the proposal and postponing it until 2030, citing concerns over feasibility for the Tax Administration and banks. The delay is expected to cost the treasury billions, though no precise amount has been given. The House is scheduled to debate the tax plan the following day, while consideration of the Box 3 proposal remains scheduled for the following Monday.