Budget leaks: basic income tax cut

More details of Tuesday’s budget have emerged in Monday’s papers following the leaking of the government’s financial statement (miljoenennota) to tv company RTL.

The Financieele Dagblad reports that the basic income tax rate will go down half a percent to 33.15%, while the second band will rise slightly to 41.45%. In addition, unemployment benefit premiums will go down sharply from 2009, the paper says.
The paper confirms earlier leaks that the VAT (btw) rate is set to go up from 19% to 20%.
The financial statement also says that the budget surplus will hit 0.5% next year, rising to 1% by 2011, slightly less than agreed in the coalition accord.
The Telegraaf reports that lease car drivers face an increase in tax on the catalogue value of their cars from 22% to 25%.
RTL also said the government plans to slap a €11.50 extra tax on short plane flights and a €45 levy on longer ones. This measure will raise €350m a year. The government will also raise taxes on tobacco and diesel fuel, RTL says.
Copies of the financial statement were circulated to parliamentary party leaders under embargo on Friday, but will not be given to MPs and journalists until Tuesday morning.
RTL said it had decided not to place the document on the internet, as it did after previous leaks, to protect its source. Each copy of the statement has security codes making it possible to trace the source.
Last year there were very few leaks connected to the budget because no embargo copies were distributed.

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