Deputy minister proposes tax reforms

14th April 2011, Comments 0 comments

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

In a letter on his future "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, to further lower profit taxes for companies 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.

© Radio Netherlands Worldwide

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