Dutch employers have written to parliament to protest at tax increases on industry which are included in the recent budget agreement.

In particular, the increase in tax on mains water will have an ‘unintentioned and disproportionate impact’ on companies, especially those in the chemicals and metal sectors, the VNO-NCW employers’ organisation says.

The tax means some firms which currently pay €50 a year for mains water may have to pay €10m in water taxes a year, the organisation’s research shows. Hospitals and other public sector organisations which use a lot of water will also be hard hit, according to the Financieele Dagblad.

Waste

The reintroduction of an extra tax on waste disposal is also under fire from employers. They say it is likely to lead to more waste being shipped abroad for disposal, and less recycling.

In addition, employers are angry that the super tax of 16% on incomes over €150,000 is being extended for a second year, even though it was supposed to be a one-off measure.

Compensation for the extra cost of energy is being scrapped and changes in the tax of company cars will also pose an extra burden on industry, the employers’ organisations say.

Parliament debates the new tax plan with junior finance minister Frans Weekers on Monday. The minister will reply to their objections next week.