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Jeroen Dijsselbloem (Photo: Rijksoverheid.nl) - Credit: Jeroen Dijsselbloem (Photo: Rijksoverheid.nl)
Business
PvdA
corporate income tax
tax evasion
Jeroen Dijsselbloem
Ministry of Finance
Thursday, 5 January 2017 - 15:35
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Labour party wants to increase corporate income tax

PvdA Minister Jeroen Dijsselbloem thinks corporate income tax should increase in the next government's term, he said in an interview with newspaper AD. According to him, this is needed to "restore the balance between ordinary Dutch and international companies, and between workers and the wealthy". This is remarkable because he previously, as Minister of Finance, said that the profit tax can gradually be lowered.

"Workers in recent decades paid an increasing share of total taxes. The wealthy benefit from it. The balance is also missing between companies. The bakery on the corner pays its taxes, while creative multinationals never do." Dijsselbloem said to the newspaper. The highest rate of income tax for businesses in the Netherlands is currently 25 percent. Dijsselbloem would not say how much he wants to increase corporate income tax, as he is waiting for the Central Planning Bureau to first check the PvdA-program.

Dijsselbloem emphasized that he is speaking for the PvdA, and not as Minister of Finance or on behalf of the government. "As far as I and the PvdA are concerned, the tax rate for companies needs to increase in the coming years", he said.

On November 22nd, speaking as Minister of Finance, Dijsselbloem said in an interview with RT Z that the Netherlands can decrease profit tax in the coming years, if at the same time deductions and tax structures are reduced. In that way the Netherlands can remain competitive. To AD Dijsselbloem explained that in the RTL Z interview he was explicitly speaking about potential revenue that can be made from tackling tax evasion. On this the PvdA and VVD coalition made agreements that any additional revenue from tackling tax evasion will not lead to higher net taxes for businesses.

In general however, the PvdA believes that corporate income tax is too low. "Looking ahead, in the new period, we find that the rates must be raised to restore the balance."

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