DutchNews.nl - DutchNews.nl brings daily news from The Netherlands in English

25 May 2025
Newsletter Donate Advertise
  • News
  • Life in the Netherlands
  • Jobs
  • Podcast
  • About us
  • Search
  • Home
  • Economy
  • Art and culture
  • Sport
  • Europe
  • Society
  • Environment
  • Health
  • Housing
  • Education
  • News
    • Home
    • Economy
    • Art and culture
    • Sport
    • Europe
    • Society
    • Environment
    • Health
    • Housing
    • Education
  • Life in the Netherlands
    • Latest
    • Opinion
    • Books
    • Travel
    • 10 Questions
    • Learning Dutch
    • Inburgering with DN
    • Food & Drink
    • Ask us anything
  • Jobs
  • Podcast
  • About us
    • Team
    • Donate
    • Advertise
    • Writing for Dutch News
    • Contact us
    • Privacy
    • Newsletter
  • Search

MPs add €4 billion to the budget, back higher tax, minimum wage

September 22, 2023
Mark Rutte answers questions after his last budget debate. Photo: Sem van der Wal ANP

New measures backed by MPs in two days of debate on the caretaker government’s spending plans have added almost €4 billion to the budget, the Financieele Dagblad said on Friday. 

MPs voted to freeze petrol taxes at their current level, increase the minimum wage, cut energy taxes and put more money into public transport, on top of the €2 billion package put forward by the cabinet to reduce poverty on Tuesday. 

At least half of the cost will be passed on to industry, banks and the wealthy, the paper said. 

Employers organisations had already warned about the impact on industry, particularly small firms, which, they say, will be hard put to meet higher minimum wage requirements.

As yet it is unclear if the changes agreed by MPs will eventually materialise, the FD said, because they have not yet been underpinned financially. Nor is support in the upper house, or senate, guaranteed. 

In addition, there is not enough time to debate all the ministries’ budgets before the general election on November 22 and the new-look parliament may also view things differently.

Nevertheless, a narrow majority of MPs backed GroenLinks/PvdA and ChristenUnie called for a further 1.7% rise in the minimum wage and social security benefits next year, as well as putting €425 million more into organised childcare.

The total cost of some €2 billion is to be funded by increasing the top rates of corporate and asset tax by two percentage points, generating €450 million, increasing the tax on bank profits to raise an extra €350 million, and introducing a tax on share buybacks to bring in €1.2 billion

“MPs are playing with fire,” warned the Dutch banking association, while investors lobby group VEB described the plan for a tax on share buybacks, as “absurd”. 

Prime minister Mark Rutte has already warned that a tax on buybacks “probably won’t be possible” before January and could lead to more companies leaving the Netherlands. 

Neither Pieter Omzigt, whose new party NSC is leading in the polls, and pro-farmers BBB, supported the proposal, with Omtzigt slamming the financial underpinnings.

Fuel

Both parties did, however, back a VVD measure to freeze the tax on fuel, which would ensure petrol will not go up by 20 cents to €2.50 for a litre of Euro95 from January, as well as a permanent cut in energy tax. That was not supported by GroenLinks/PvdA, which is the second biggest party in the senate.

The €1.4 billion needed to fund these measures would come from “reserves which had been allocated but not spent”, income from natural gas and, if necessary, a raid on the government’s economic growth fund, VVD parliamentary party leader Sophie Hermans said.

MPs also want to freeze public transport tickets, which would involve an additional €120 million for state-owned NS and €300 million for the regional bus companies, which are owned by the private sector. 

Share this article
  • Facebook
  • Twitter
  • LinkedIn
  • Reddit
  • Copy URL
Budget Election 2023 Poverty Tax
Thank you for donating to DutchNews.nl.

We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.

Make a donation
Latest
Show more
Dutch fundamentalist Protestants again say "no" to women MPs
AEX falls as Trump threatens 50% import tariff on European goods
Dutch forensic experts develop deepfake video detector
Zaanstad says yes to tourist tickets for Zaanse Schans windmills
Fewer international child abductions by parents last year
NewsHomeEconomyArt and cultureSportEuropeSocietyEnvironmentHealthHousingEducation
Life in the NetherlandsLatestOpinionBooksTravel10 QuestionsLearning DutchInburgering with DNFood & DrinkAsk us anything
About usTeamDonateAdvertiseWriting for Dutch NewsContact usPrivacyNewsletter
© 2025 DutchNews | Cookie settings

Help us to keep providing you information about coronavirus in the Netherlands.

Many thanks to everyone who has donated to DutchNews.nl in recent days!

We could not provide this service without you. If you have not yet made a contribution, you can do so here.

The DutchNews.nl team

Donate now

Dutchnews Survey

Please help us making DutchNews.nl a better read by taking part in a short survey.

Take part now