Dutch treasury made €38.5 billion in profit tax; €11 billion more than expected

The Dutch treasury received 38.5 billion euros from profit tax last year, 11 billion euros more than budgeted, sources told RTL Nieuws. Profit tax proceeds also topped 2021’s record of 30.8 billion euros.

Despite the war in Ukraine, many companies had a great 2022. They pay corporation tax - more commonly referred to as profit tax - on the profits they make. The Cabinet had budgeted for 27 billion euros from this tax last year.

Despite the higher-than-expected profit tax proceeds, the government may still need to implement budget cuts this year. The biggest reason for that is the price cap on energy implemented in January to help consumers with their high energy bills. In January alone, that measure cost the Cabinet nearly 1 billion euros.

The government will calculate what the various measures to protect consumers’ purchasing power cost in the spring.

Edith Schippers (VVD) thinks that if government spending is over budget, government budgets should be cut to make up for it. “If the government is short on money, tighten the government’s belt,” said the Senate leader for the right-wing party. “It has only grown in recent years. Don’t take that from companies.”

Jesse Klaver of left-wing GroenLinks disagrees. He thinks the government should fill gaps in the budget with higher taxes on big companies. “Large companies can be taxed even more,” he told RTL. “They make profits in the billions.”