The Dutch cabinet proposed abolishing the tax arrangement that allows employees to buy their employer’s products or services at a discount, with the change planned for 1 January. Under the current scheme, the discount may be up to 20% and may not exceed €500 per employee per year. The abolition was expected to raise about €123 million annually and was included in the Tax Plan, on which the House of Representatives and Senate were still due to vote later in the year.

Twenty-five sector organisations and trade union FNV called for the arrangement to be retained. Employers said that moving the discount into the existing tax-free allowance could force them to choose between staff discounts and benefits such as Christmas packages, while exceeding that allowance can lead to taxation of up to 80%.