Extra tax bill will hit middle income earners hardest, minister says

Junior finance minister Eric Wiebes on Monday published more information about the extra tax which up to six million people will have to pay because of reductions in the tax free allowance for people in work.

The worst affected will be people earning around €56,500 including both holiday pay and a 13th month. They will have to pay an extra €321 in tax over their income, Wiebes said.

People without a 13th month but in a similar pay bracket will get a surcharge of up to €74. By contrast, people earning €90,000 and over face a surcharge of just €17.

However, these are still approximations, Wiebes said.

On average, people will face a surcharge of €150, taking the total bill to around €800m. People with an income of less than €20,000 are likely to get money back.

The extra payment stems from the government’s 2013 budget plans when ministers decided to reduce a tax discount (heffingskortingen) for people in work. That reduction was not incorporated into this year’s tax returns but will be included from next year.

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