MPs favour sober tax deductions for culture donations

16th November 2011, Comments 0 comments

MPs want to limit cabinet plans to make it more financially attractive to sponsor the cultural sector. At the same time, MPs want sports and music clubs to benefit from the same arrangement. The conservative VVD, Christian Democrats CDA and Freedom Party PVV have submitted amendments to a bill governing donations, the Donation Act.

Deputy Finance Minister Frans Weekers proposed the bill to soften the blow of far-reaching government cuts to subsidies in the cultural sector. He had wanted to make donations 150 percent deductible from income tax, so if a tax payer who pays the highest rate of tax donates 1000 euros, he gets 780 euros back.

The Freedom Party, however, thought the plans went too far as it cost the treasury too much, so the proposed 150 percent tax deduction bas been lowered to 125 percent for a maximum donation of 1250 euros. The Christian Democrats thought it was unfair that local orchestras would not be able to benefit from the same measure as symphony orchestras. As a result, sports and music clubs will also be able to use the same construction for donations to invest in a new clubhouse or music instruments. The three parties make up a majority in parliament so the sobered down plans are backed by a majority.

© Radio Netherlands Worldwide

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