This is how the new right-wing coalition agreement will affect your wallet

The new coalition of PVV, VVD, NSC, and BBB have many plans for the Netherlands. Here are the bits from the coalition agreement that will impact your wallet.

Ways in which households will receive or save more money

• More support for middle-income earners through a third income tax bracket. That will cost 2 billion euros
• The parties froze plans to phase out double tax credits - so people receiving benefits won’t be limited in the tax credits their households can claim for now
• 500 million euros per year will go into a fund to help households in need. This plan still needs to be elaborated
• The child budget will increase
• The rent allowance will increase
• The healthcare deductible will be frozen for the next two years and then halved in 2027. That will cost 5 billion euros per year
• The coalition wants to make childcare almost free for working parents. But in the meantime, the childcare allowance will not increase with inflation as planned.
• The increase in tax on income from (a share in) a company will be reversed. So this box 2 rate will decrease from 33 to 31 percent
• The box 3 tax on savings and investments will be reduced. By how much is not yet clear, but the parties planned to miss out on 100 million euros per year for this.
• The reduction in excise duties on motor fuels will remain in effect next year, costing over 1.5 billion euros
• The energy tax on gas will be reduced for small consumers, by 2.82 cents per cubic meter. That will cost the treasury 357 million euros

Government policies that will cost Dutch households more money

• The cultural sector will no longer fall under the low VAT rate of 9 percent but will have to charge the high VAT rate of 21 percent. That will mean higher prices for theater and museum tickets. Cinemas and amusement parks are excluded and can still charge the low VAT rate.
• All types of holiday accommodations except for campsites must also charge the high VAT rate of 21 percent, so hotel stays will become more expensive.
• The VAT on books, magazines, and newspapers will also increase to 21 percent
• The netting scheme, in which solar panel owners can deduct the energy they add to the grid from the energy they use, will disappear in 2027.
• From 2027, there will be a levy on circular plastic. The levy will generate over 500 million euros in income per year for the treasury, and likely result in many products becoming more expensive.
• Flight tax will become distance-dependent from 2027. According to the coalition parties, longer flights will be taxed more because they emit more greenhouse gasses. So long-haul flights will become more expensive. Until now, climate policy has generally focused on discouraging short flights because they can be easily replaced with more environmentally friendly forms of travel, like the train. The coalition expects this measure will generate 248 million euros per year.

Policies specifically affecting students and their fees

• International students will face higher tuition fees and more restrictions on basic study grants
• The public transport reimbursement for Dutch students abroad will be abolished
• Students who take too long to graduate will face higher tuition - every year of delay will cost these students an extra 3,000 euros

A full summary of the budget behind the coalition agreement can be found here.