Mortgage tax relief again in spotlight

Cuts in mortgage tax relief and changes to the way rent controlled property is assessed are among working party suggestions to boost government income, the Financieele Dagblad reports on Thursday.


Twenty working parties were set up last year to look at all aspects of government spending in an effort to identify areas where savings can be made.
And although the government has collapsed and elections will take place on June 9, ministers hope the recommendations can become part of the election debate.
€29bn
Earlier this week, the CPB economic policy unit said the next government will have to find savings and new tax income to raise a structural €29bn.
Mortgage tax relief in the Netherlands is among the most generous in Europe, but cuts would be very difficult politically.
Social housing
Civil servants have also suggested basing social housing rent on actual property values rather than their size. This would lead to higher rental income in the bigger cities, where many high income households live in rent-controlled homes.
Other suggestions to save money include further reductions in unemployment benefit, a higher own-risk charge on health insurance, an increase in public transport fees and a switch from student grants to student loans.
The 20 working groups are due to deliver their proposals in April.

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