Local authorities are to be given free reign to decide what property tax rate (onroerendzaakbelasting) to charge home and office owners from January 2008.
MPs voted in favour of the bill in a charged debate on Thursday night.
However, if the average rise in property tax is more than 3.75% nationwide, junior home affairs minister Ank Bijleveld says she will cut the amount of money the treasury contributes to local government.
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