The caretaker government has cut value-added tax (btw) on labour involved in building and renovation work from 19% to 6% in an effort to boost the construction sector, the Telegraaf reports on Tuesday.

Ministers hope the move will help the housing market, which is still suffering from the economic crisis.
Finance minister Jan Kees de Jager has also agreed that home owners who have been unable to sell their old house will be able to deduct both mortgages from tax until 2013.