Cabinet weighs €350m tax relief to win support for tax plans

The cabinet is considering €350m in extra tax relief. It hopes this will win support for its tax plans, under which the tax on work rises in the coming years to pay for extra defence spending. In 2027 the higher tax would raise €3.5bn for the treasury.

Finance state secretary Eelco Eerenberg says much of the burden is already offset, partly by letting the health insurance premium rise less sharply. Other tax changes are also planned to support purchasing power. That leaves €350m in extra tax burden, he says.

Eerenberg says a few hundred million euros have taken the sharp edges off the so-called "NAVO-taks" (NATO tax) for next year.