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Cabinet has covered less than a fifth of lost Box 3 revenue, Finance Ministry calculates

The Dutch government has failed to secure funding for over 80 percent of the projected revenue loss resulting from upcoming changes to the box 3 tax system. With an uncovered deficit of 17.6 billion euros through 2040, the cabinet faces significant criticism regarding the feasibility and financial planning of its proposal.

The Dutch Ministry of Finance has disclosed that proposed measures to cover the costs of abolishing taxes on unrealized gains in box 3 by 2028 are insufficient. Out of a projected 21.8 billion euro revenue loss through 2040, the cabinet has only secured approximately 4.2 billion euros in offsetting measures, leaving a significant uncovered deficit of 17.6 billion euros. Revenue generated from lowering box 2 tax rates is expected to decline after 2031, exacerbating the long-term fiscal gap. Finance Minister Eelco Heinen is pushing for the introduction of a capital gains tax, though the Council of State has labeled the current proposal as impractical. While the government remains committed to the policy, implementation could be delayed until 2029 depending on the operational readiness of the tax authorities and banks. The Parliamentary Committee on Finance is scheduled to review the revised tax plans next week following criticism regarding the lack of financial coverage for the project.

Politics Economy Business Netherlands

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

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