The cabinet is set to agree that value-added tax (btw) will not rise from 19% to 20% next year because of the likely effect on the economy, the AD reports on Friday.

Sources in The Hague tell that paper that while a final decision has not yet been taken, everyone expects ministers to find alternative ways of raising the €1.5bn that the increase would have generated for the treasury.
A planned cut in unemployment benefit premiums which the tax increase was to have funded will still go ahead, the paper says. In return, ministers expect the unions and employers to stimulate wage moderation.