An increase in taxes to help get the government’s books back in order would ‘not be sensible’, prime minister Jan Peter Balkenende says in an interview with the Telegraaf, due to be published on Thursday.

‘Economists agree that this would be counter-productive,’ because of its effect on the economy, Balkenende is reported as saying by the paper.
In September the government set up 20 working parties to look at ways of cutting government spending and raising more cash, saying all avenues would be explored. Ministers need to find some €35bn to close the gap in treasury spending caused by paying for the recession.
Top tax rate
Balkenende told the Telegraaf he was also opposed to suggestions from the coalition Labour party that the 60% top rate of tax be brought back.
‘The current top rate of 52% already puts the Netherlands among the most highly taxed in Europe,’ he said. ‘And you reach the top rate quickly in the Netherlands as well.’ The 52% rate is payable on wages over €54,776.
Labour’s leader Wouter Bos is the current finance minister and Labour MPs had called for a tax increase to be seriously considered.
However, Balkenende told the Telegraaf he and Bos agreed that a tax rise was out of the question. ‘There is no way round that,’ the paper quoted him as saying.