Dutch cabinet urges MPs to reject four-party tax amendment

The Dutch cabinet has advised MPs to reject a tax-plan amendment backed by PRO, Volt, D66 and CDA, arguing that its funding is not sufficiently specified and that tax relief for workers would begin before the proposed wealth-tax revenue arrives.

In a letter, State Secretary for Finance Eelco Eerenberg said more than €400 million of the plan’s intended €1 billion increase in taxes on wealth would come from tackling tax-avoidance arrangements, but only one such measure was named in detail.

He also objected to the timing: the parties want to reduce taxes on workers next year, while the additional revenue from taxing wealth would come later. The cabinet’s objection is about the proposal’s financial coverage, rather than political opposition to its aims, the report said.

The assessment was not wholly negative. Eerenberg said the proposal was more than adequately funded over the long term and that the proposed millionaires’ tax in box 3, covering savings and investments, could be implemented from 2029, although it would make the system more complex.

The proposal followed a deal between PRO, Volt, D66 and CDA to raise €1 billion through a millionaires’ tax and measures against avoidance of inheritance and gift tax. The House had reopened debate on the 2027 tax plan after the parties reached that deal.