The government’s spending plans for next year include increasing the tax and premium burden by €7bn and increasing VAT to 20%.
■ Budget surplus to reach 0.5% in 2008, rising to 1% by 2011.
■ Economy to grow 2.5% next year.
■ National debt to reach 37.5% of GDP next year, down from this year’s 39.1%.
■ Inflation to reach 2% in 2008.
■ Total package of tax and premium increases to generate €7bn for new policies.
■ Basic tax rate to be cut by 0.5% to 33.15%. Second band to rise slightly to 41.45%.
■ Unemployment benefit premiums cut for workers, increased for employers.
■ VAT (btw) to rise from 19% to 20% in 2009.
■ Extra tax break for the over-63s who stay at work. Richer pensioners to pay more tax.
■ Tax on environment-unfriendly company cars to go up from 22% to 25% of catalogue value.
■ Home-owners with property worth over €1m to pay more tax. No change on mortgage tax relief.
■ €350m for public transport over four years.
■ Refugee amnesty to cost €360m. €80m for ‘integration’.
■ Subsidies for solar panels and boilers.
■ Extra tax on air travel.
■ Partial introduction of free text books in secondary schools, and free museum visits for under-12s.
■ Cigarettes up 25 cents a packet, a beer will cost 2.7 cents more.
■ Introduction of own-risk element in healthcare insurance.
■ €335m cut from the budget for hospitals and specialists but
€60m to boost staffing.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation