Deputy minister proposes tax reforms

RNW, 14 April 2011

The Dutch government plans to increase taxes on consumption by increasing Value Added Tax and reduce taxes on labour by lowering income tax.

Deputy Finance Minister
Frans Weekers

In a letter on his "fiscal agenda" - in response to requests for tax reforms from MPs last autumn - Deputy Finance Minister Frans Weekers says he wants a debate on the tax reforms in parliament.

The minister wants to reduce the number of state taxes from 22 to 16. For instance he wants to scrap packaging tax, in order to further reduce tax on company profits to 24 percent (this tax has already been lowered to 25 percent).

Deputy Minister Weekers plans to get tougher on fraud. He thinks fraudsters forfeit the right to income tax rebates. In the past two years, the treasury has prevented 90 million euros being paid out wrongfully. At present, there are 16,000 fraud tips under investigation.

"I want to put a dam in the way of people who think the treasury is an ATM," says deputy minister Weekers.