Five-party coalition backs commuter tax, even though they oppose it

The five-party coalition involved in drawing up austerity measures this year have voted to press forward with plans to scrap the tax break on commuters’ travel, even though four of the parties now oppose the plan.


The Labour party had submitted a motion to parliament on Thursday calling for the plan to be dropped from the 2013 budget proposals, but all five parties voted against.
The budget will be presented on September 18, just six days after the general election. Four of the five parties have already said in their election manifestos they will amend or drop the proposal altogether. The Liberal democrats (D66) are the only ones still in favour.

Cuts

The austerity package envisages the government generating €1.3bn by scrapping the tax break on travelling expenses – which will hit commuters’ spending power by 1.5%. In total, the government has to generate €12bn in 2013 to meet eurozone monetary union rules.
Earlier this week, junior finance minister Frans Weekers said he would press on with drawing up draft legislation to implement the changes. In particular, it is complicated to define what constitutes home to work travel, he told MPs.
The five parties have pledged to continue to support the plan until a new cabinet has been put together after the general election.
Are the parties right to stick to their agreement? Have your say using the comment form below.

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