Coalition in crisis as tax plan passes without VVD support

The cabinet’s 2027 tax plan passed parliament by 76 votes to 74 on Thursday evening, despite the right-wing liberal VVD voting against it after its coalition partners backed a wealth tax amendment drawn up by left-wing opposition parties.

The VVD says the amendment breaches the coalition agreement, and warned it would vote against the whole plan if it was adopted. The party has not said whether it will stay in the coalition, meaning a cabinet collapse is still on the cards.

“I’m not going to make a decision two minutes after the votes,” parliamentary leader Ruben Brekelmans said as he left the chamber, calling the day’s events “appalling”, according to broadcaster NOS.

Prime minister Rob Jetten said he would meet his deputy prime ministers, VVD leader Dilan Yesilgöz and the CDA’s Bart van den Brink, on Friday morning, according to ANP.

Millionaires’ tax

The amendment was tabled by left-wing Pro and pan-European progressive party Volt, and is a scaled-down version of what the two parties call their “millionaires’ tax”. Their original plan aimed to raise €1.5 billion; the version adopted raises around €1 billion.

It uses nearly €900 million to reduce a planned rise in the lowest income tax rate. To pay for it, the tax on savings and investments (box 3) is split into two rates: 35.5% on returns up to €60,000 a year, and 38.5% above that.

It also clamps down on “paper gifts”, an arrangement where parents promise money to their children on paper to reduce gift and inheritance tax. About €400 million still has to be found from taxes on wealth from 2028.

Majority on the left

D66 and the CDA won the final vote with Pro, Volt, pensioners’ party 50PLUS, Christian-social ChristenUnie, left-wing multicultural party Denk, and the animal rights party PvdD.

The PvdD had said on Wednesday that it would vote against. It changed its position shortly before the vote, after D66 and the CDA agreed to raise the tax on private jets and drop a planned increase in train fares.

A motion of no confidence in the cabinet, tabled by the anti-immigration PVV, was defeated by 116 votes to 34. The tax plan now goes to the senate, where the coalition does not have a majority.

Pro leader Jesse Klaver said that by passing the plan, “a centre-left majority in parliament is taking responsibility for governing the country. That way we prevent chaos.”