The package of tax reforms currently being discussed by the coalition government will not include a proposal to drop a special tax break for the self-employed, Labour MP Ed Groot has told the Financieele Dagblad.

Labour had earlier backed scrapping the self-employed tax-free allowance of €7,280, arguing that it led to unfair competition with ordinary workers.

According to some reports, freelancers who make profits of €24,000 effectively pay 8% tax, while people in regular employment lose 24% of their income in taxes and premiums. Unlike ordinary workers, however, freelancers are not entitled to unemployment benefit or incapacity benefit and have to pay for their own pensions.

Groot told the FD the difference could instead be reduced by lowering the cost of employing staff. In addition, he suggested, the tax reforms could include incentives to get the self-employed to take out insurance against invalidity and to take on staff.

VVD parliamentarian Erik Ziengs confirmed that the tax break for the self-employed would not be affected.