Scrapping mortgage tax relief on expensive homes is now unlikely to be put forward as an alternative to increasing the state pension age, the Telegraaf reports on Friday.
Sources told the paper an end to tax relief on homes costing more than €1m was no longer on the table at discussions between unions and employers on alternatives to the pension age hike.
The government wants to raise the state pension age from 65 to 67 as part of its efforts to get state finances back on track. Unions and employers are strongly opposed and have been given until October 1 to come up with another plan.
Unions say an end to the tax break on multi-million euro homes would raise almost enough cash. But sources told the paper employers do not like the idea because it is too complicated, the results are too unpredictable and it will lead to tax avoidance.
The Netherlands is the only northern European country preparing to increase the pension age to 67 to help cope with the financial crisis.
The issue is politically highly controversial and MPs from the ruling Labour party are also opposed to any increase.
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