Tax on travel expenses, slow student fine set to disappear
Monday 01 October 2012
Plans by the outgoing government to charge higher fees to students who take too long to complete their degrees and to tax home-to-work travel expenses are set to disappear if a Liberal-Labour coalition becomes a reality.
Sources close to the on-going talks between the VVD and PvdA suggest a proposal to drop the commuter tax plans will be submitted to parliament this week.
Many workers get a tax-free allowance from their employers to cover the cost of getting to work. But last month's budget included plans to tax this perk, which will cost some commuters up to €80 a month.
The Telegraaf reports on Monday the two parties have also agreed to abolish the extra €3,000 a year in fees the government plans to charge students who take more than four years to complete a basic degree.
The fine was due to raise €370m for the treasury. Instead, the new government plans to scrap all student grants and replace them by loans, the paper says. Students who live away from home get a basic grant of some €260 a month.
There is majority support for scrapping the commuter tax and the slow student fine in parliament.
Do you agree with scrapping either or both measures? Have your say using the comment form below.