Dutch gov't pushing billions into boosting purchasing power: report

The Cabinet is making an ultimate attempt to help boost the purchasing power of low-income households this year. Ministers are also working on a plan involving billions of euros to help more citizens financially next year, sources close to the government told AD and Parool.

The Ministry of Finance and Prime Minister Mark Rutte previously warned that more measures would be challenging, if not impossible, this year due to the overworked implementing bodies. But after the Central Planning Office (CPB) calculated that purchasing power would drop 6.8 percent, the Cabinet is again looking at the options for short-term measures to soften the blow.

“While it has been said before that nothing is possible, the blow is now hitting more and more citizens hard,” an insider said. “There are no guarantees, but it was also previously said that reducing excise duty was difficult, and then it turned out to be possible. The same was true for extra money for the lowest income.”

Taking measures for next year will be more straightforward with the negotiations for the 2023 budget underway. According to the newspapers’ sources, the government is working on a package involving billions of euros. The package could include raising the minimum wage and benefits or decreasing taxes for middle-income earners.

This year, the government already pushed almost 7 billion euros into supporting purchasing power. The government lowered the energy tax, excise duties on fuel, and VAT on energy to help citizens cope with the increasing costs. Low-income households also received 1,300 euros in subsidy.