Main points of Budget 2006

14th September 2005, Comments 0 comments

14 September 2005, AMSTERDAM — Here are the main points of Budget 2006 as outlined in draft versions of the document leaked to the media. Finance Minister Gerrit Zalm presents the official budget on Prinsjesdag, 20 September.

14 September 2005

AMSTERDAM — Here are the main points of Budget 2006 as outlined in draft versions of the document leaked to the media. Finance Minister Gerrit Zalm presents the official budget on Prinsjesdag, 20 September.

  • Unemployment premium paid by employees cut by 1.15 percent.
    This will free up EUR 190 for people earning a gross salary of EUR 43,000 or higher. Employees on lower paid with also benefit, but to a lesser extent.
  • General tax deduction of EUR 1,894 - which everyone subtracts from their tax bill - increases by EUR 68.
  • An extra EUR 200 million to compensate parents for the cost of childcare.
  • Annual increase in car fuel taxes is scrapped for 2006. This will save motorists 2 cents per litre of petrol or diesel.
  • Income-dependant healthcare premium paid by employers rises to 6.5 percent. Self-employed and people on early retirement who have to pay the premium will pay 4.4 percent. Pensioners to pay 6.5 percent on national pension and 4.4 percent on supplementary pension.
  • Corporation tax to drop more quickly to 29.6 percent
  • Tax on high-polluting vehicles and 'asocial' sports utility vehicles increases
  • Road tax (bpm) on economical cars reduced.
  • Oil companies will be obliged to mix bio fuel with petrol and diesel to cut greenhouse gas emissions. 
  • An extra EUR 1 billion to come available up to 2013 to subsidise wind energy.
  • Another EUR 400 million to subsidise fitting carbon filters to diesel engines.
  • An extra EUR 300 million to pay for school building.
  • An extra EUR 100 million to pay for upkeep of monuments.
  • An extra EUR 130 million for research into new medicines.

Despite all the extra expenditure the budget deficit will fall from 2.3 percent to 1.7 percent in 2006, according to the government's budget plans.

[Copyright Expatica News 2005]

Subject: Dutch news

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