Cabinet brings tax plan with guidelines to a safe haven

THE HAGUE (ANP) - The House of Representatives has approved the government's much-criticized tax plan for 2025 by a large majority. A number of opposition parties also voted in favor, which means that the bill also appears to be passing in the Senate. It did not seem that way for a long time, but at the last minute the cabinet came up with some crucial assistance, enough to convince D66, CDA, SGP and ChristenUnie.

At the insistence of these parties, the cabinet will work with them next spring to look for alternatives to increasing VAT on culture, books and sports, among other things. The measure, which must take effect in 2026, is still part of the tax plan. But the Christian parties and D66 trust that the cabinet will do everything it can to obtain the intended proceeds of more than 2 billion euros from elsewhere.

Operators of hotels and holiday parks, for example, seem to be left empty-handed. They also strongly oppose the proposed VAT increase on accommodation, with the exception of camping pitches. But in the debate about the tax plan, which dragged on until just before the votes, it became clear that the House considers it less important for that category to prevent this increase in taxes.

Long-cherished wish SGP

The three religious parties successfully requested adjustments so that donations for both companies and private individuals remain tax deductible. And the SGP saw a long-cherished wish come true with an adopted proposal to ease the burden on families with one breadwinner.

The amendment proposals from GroenLinks-PvdA, which, among other things, pushed for more tax relief for the lowest incomes, were not successful. The largest opposition party ultimately voted against the tax plan.

Extra disk

The tax plan provides, among other things, for the reintroduction of an additional bracket with a lower income tax rate. As a result, all workers will pay less tax on the first part of their income.