Socialists push national sales tax cut

SP leader Emile Roemer wants to reduce VAT from 21 percent to 19 percent. He feels that the sales tax increase in 2012 was at the expense of small and medium sized businesses - the job engine of the Dutch economy. Roemer said this in Godemorgen Nederland on Monday morning, NU reports. According to the Socialist leader, reducing sales tax now would result in product prices reducing, people buying more and strengthening SME's, which in turn would increase job opportunities. This is one of the topics included in the SP's contrast-budget - the SP's alternatives to the budget that will be presented by the Cabinet on Prinsjesdag on Tuesday. Reducing the sales tax will cost the treasury 3.7 billion euros. Roemer wants to cover this by increasing bank tax, tacking tax evasion and increasing the profit tax for big companies.