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MPs regret vote to cut 30% ruling, say it was done in a rush

March 22, 2024
Photo: DutchNews.nl

A majority of MPs now regret voting in favour of a motion to slash the 30% ruling which some international workers benefit from to pay for cuts in the interest students are paying on their loans, television current affairs show EenVandaag said on Friday.

The pro-farmers BBB and the CDA, both of which voted in favour, now say they would like to reverse their position, EenVandaag said, after questioning MPs from across the political spectrum. D66 is still considering its position.

The vote was taken in a rush of last minute legislation at the end of November, on the last night before new MPs chosen in the general election took their seats. 

MPs were keen to compensate students who were saddled with large debts during the short period grants were abolished and Pieter Omtzigt, then an independent MP, suggested cutting the provisions of the 30% ruling to cover the €200 million cost. 

The VVD was the only party in parliament to vote against the move. 

People who meet stiff qualifications on salary and skill set, and are posted to the Netherlands from abroad, can currently benefit from the tax break for up to five years.

Omzigt’s amendment calls for the tax break to be reduced from January to 30% of salary for 20 months, cut to 20% for 20 months and then to 10% for a further 20 months. 

Employers organisations and companies with a large percentage of foreign workers have warned that the the move will hurt the Netherlands’ attractiveness as a place to do business and discourage skilled workers from moving here. 

The situation is so serious that the economic affairs ministry admitted the government is looking at ways to keep companies such as chip machinery maker ASML in the Netherlands and the Telegraaf said ministers had set up “Operation Beethoven” to improve the business climate. 

Accidents

“We should not have done it,” CDA leader Henri Bontenbal told EenVandaag. “When you are under such pressure and dealing with so many motions, accidents happen. This is an example.”

Tax minister Marnix van Rij is reportedly preparing an alternative plan to compensate students which he aims to present to MPs later this month. That would mean the 30% ruling could remain as it now is. 

The far right PVV, which has 37 MPs and is the biggest party in parliament, has not yet revealed what its position is. 

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