Tax plan passes

MPs voted on Thursday 12 November for the Belastingplan 2027, the government's annual tax package, and for an amendment from PRO leader Jesse Klaver and Volt leader Laurens Dassen that moves a tax increase from labour to wealth. In total 79 MPs voted in favour. The amendment involves €1bn.

Why it matters

• The amendment means slightly lower tax on labour, paid for by people with large assets.
• The Tweede Kamer also approved the cabinet's plan to turn box 3 into largely a capital-gains tax from 2029.
• The Eerste Kamer, the Senate, must now approve the box 3 plan.

Coalition parties D66 and CDA backed the amendment, together with SP, 50Plus, the Party for the Animals, ChristenUnie and DENK. The VVD, the third coalition party, voted against the Belastingplan because it now contains the PRO/Volt increase.

VVD parliamentary leader Ruben Brekelmans called the outcome "dismaying" (ontluisterend). "I had not expected D66 and CDA to take such an enormous turn to the left," he said. "But I first want to discuss this properly in my party."

After the vote, D66 parliamentary leader Jan Paternotte urged the VVD not to pull the plug on the cabinet. Prime Minister Rob Jetten will talk with the deputy prime ministers on Friday morning about the cabinet's future. He said he still trusts that D66, the VVD and CDA can work it out, and wants to repair the breach of trust.

Insurance products, savings and crypto would still face an annual tax on growth from 2029. The cabinet wants all assets under a gains tax from 2030. D66, VVD, CDA, 50PLUS, SGP, JA21, BBB, MP Keijzer and Groep Markuszower voted for the plan.

The Council of State and the Tax Administration have sharply criticised the plan, and the cabinet has dropped a start in 2028. The Eerste Kamer is probably to debate it this year. A majority looks in sight there, but approval is not certain.