The VAT increase next year will increase costs for Dutch households by an average of around 300 euros per year, according to ING economists. The low VAT rate will increase from 6 to 9 percent on January 1st, which is expected to increase inflation by 0.6 percent extra, ANP reports.
The VVD, CDA, D66 and ChristenUnie are now really very almost done with their government agreement, ChristenUnie leader Gert-Jan Segers said to NOS on Friday afternoon. But he thinks the four parties will have to meet again on Monday.
There will be no meetings over the weekend. The ChristenUnie respects the Sunday rest. "And on Saturday I have other plans", Segers said to the broadcaster.
The Rutte III government is changing the immigration policy, specifically they're limiting immigrants' access to benefits. The VVD, CDA, D66 and ChristenUnie are also increasing the low VAT rate from 6 percent to 9 percent, RTL Nieuws reports.
The Dutch government expects to make nearly 8 billion euros more on taxes and premiums than estimated on Budget Day last year, according to the Spring Memo sent to parliament by Finance Minister Jeroen Dijsselbloem on Thursday. The extra money mainly comes from VAT (€2.4 billion), corporate tax (€2.3 billion) and wage and income tax (€1.2 billion), NU.nl reports.
The Spring Memo shows the changes the government made since the budget was presented on Budget Day in September last year.
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.
The low oil prices can finally be noticed at filling stations, though the price decline is slower for petrol than for diesel. Since the first week in July, diesel prices have fallen nearly 8.5 percent, while petrol prices fell less than six percent.
The price of crude oil has almost halved over the past year, but this price decline has had little effect on the price of petrol and diesel. Over the same period, the petrol price decreased by an average of only 5.1 percent.
The VVD is pulling its support to the Cabinet's proposed increase on sale tax on many goods and services now that the negotiations on the tax reform has collapsed.
The planned sales tax increase could have an impact on inflation. If the value added tax is indeed increased from 6 percent to 21 percent, inflation could increase by up to 0.9 percent.
GroenLinks is against the part of the Cabinet's tax reform plan that would increase the value added tax from 6 percent to 21 percent. This means that the plan may not get the necessary support in the Senate.
The Cabinet's tax plans will give a household with one or two tax workers a tax advantage that averages at 800 euros per year. This is according to the outlines of the coalition agreement which was presented to the Ministry of Finance on Wednesday, NOS reports.
Small and medium sized businesses are furious about the governments alleged plan to get rid of the so-called "low tariff" value added tax rate on most products and services.
The Financial Information and Investigation Service (FIOD) suspects nine people from eight different investigations of filing false sales tax declarations, the authority announced on Thursday. In addition, the investigators seized a large amount of the involved companies' accounting records for investigations conducted by the Public Prosecutor's Office.
UberPop drivers are evading taxes by not charging VAT for the trips they make. According to Uber, it is impossible to charge VAT as the UberPop drivers are not registered with the Chamber of Commerce.
The national deficit went up to €9.4 billion in the first half of 2014. This is €5.1 billion higher than the same period last year, the Central Bureau for Statistics (CBS). According to the CBS, this rise is because telecom frequency auctions, which started in 2013, are now dropping away.
VVD-leader Halbe Zijlstra is saying that the current tax system needs to be overhauled in favor of simplicity. The party told the cabinet that all allowances must be abolished and transformed into lower taxes. The Tax Administration must focus on the core task: collecting money.