The coalition government threatens to become embroiled in a dispute over reforming the tax system in the run up to the summer recess, the Financieele Dagblad says on Tuesday.

Halbe Zijlstra, leader of the VVD in parliament, told the Telegraaf on Sunday he opposes the idea of a higher tax on assets, something which the coalition Labour party has openly called for.

In addition, junior finance minister Eric Wiebes (Labour) has said the cabinet will not publish its reaction to recommendations for an overhaul of the tax system until after the summer, rather than before. This is due to the complexity of the process, Wiebes said.

Simplify systems

However, opposition sources told the FD that the two coalition parties are at opposite ends on tax reform. The aim is to simplify the tax system – which is set to dominate cabinet policy for the next year.

Other major changes – to the housing and healthcare systems for example – have already been or are about to be passed by the lower house of parliament.

There is agreement on one aspect – that the tax on work should be reduced, the FD says. That should make it more attractive for companies to take on staff and reduce unemployment.