Budget leaks: extra tax on home owners

The cabinet is planning to increase the tax on wealthy home-owners and introduce a ceiling on pension premium tax deductions, according to the latest leaks ahead of the September 18 budget.

According to the Financieele Dagblad, ministers plan to stop allowing pension premiums to be deducted from tax for those with incomes of over €185,000 a year.
Employers organisation VNO-NCW told the paper that the measure would be bad for the popularity of the Netherlands popularity with foreign companies.
Ministers are also planning to increase the eigenwoningforfait tax on houses valued at more than €1m, the paper says.
This tax is based on the official evaluation of a property by the local authority and is supposed to ‘counteract’ the advantage of home ownership over paying rent.
The tax on company cars is also going up from 22% to 25%, various media reported.
Other leaks have revealed that the price of a packet of cigarettes will rise by 25 cents, the tax on alcohol will go up by two cents for beer and 11 cents for wine, and petrol tax will be one cent per litre higher.
Plans to increase VAT on fairground attractions and amusement parks have been scrapped.
Finance minister Wouter Bos said criticism of the government’s plans are ‘rubbish’ and that the full picture would become clear when the budget is formally presented.
But Mark Rutte, leader of the main opposition party VVD, said almost every tax imaginable was being increased. ‘And that is an unimaginable situation at a time of economic growth,’ he told news agency ANP.

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