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Everyone wants to spare small savers, but who should pick up the tab?

Everyone wants to spare small savers, but who should pick up the tab?

The Dutch government must revise its Box 3 tax proposals after parliament rejected plans to lower wealth tax thresholds for savers and investors. Lawmakers are currently debating alternative revenue sources, including adjustments to inheritance tax laws or corporate tax rates, with a new proposal expected later this month.

The Dutch cabinet has been sent back to the drawing board regarding its proposed changes to Box 3 wealth taxation. A parliamentary majority rejected the plan, which sought to lower the tax-free allowance threshold to 30,000 euros and tax returns exceeding 1,000 euros. The original proposal aimed to generate 540 million euros, but it would have also resulted in 850,000 additional taxpayers receiving tax assessments. Finance Minister Eelco Heinen noted that finding alternative funding within the wealth domain requires significant additional analysis, with a new proposal expected later this month.

Discussions regarding how to cover the revenue shortfall are ongoing, with political parties proposing various alternatives. A coalition including the CU, SGP, 50PLUS, and BBB suggested targeting paper-based inheritance and gift constructions, though the VVD strongly opposes this measure. Conversely, the VVD proposed lowering the corporate tax rate in Box 2 to stimulate profit distribution, a move the cabinet has already begun implementing for the coming years. Parliament is scheduled to debate the broader tax plan next week, with votes expected by mid-November.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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