The cabinet’s plans to introduce a capital gains tax are on course to clear both houses of parliament after three right-wing opposition parties signalled they were prepared to back the measure.
Junior finance minister Eelco Eerenberg said in a debate on Monday that the trio of JA21, BBB and SGP would support the plan, overcoming objections from other opposition parties and criticism by the Council of State.
Coalition parties D66 and CDA also voiced reservations about the reform, with Henk-Jan Oosterhuis of D66 calling it a “rather creative explanation of the budget rules” and Christian Democrat Inge van Dijk admitting that it was “not pretty”.
Luc Stultiens, of the left-wing opposition party Pro, went further, accusing the coalition parties of writing “a blank cheque for €17 billion to the wealthy”, referring to the projected budget shortfall that will be created by the transition.
The three right-wing opposition parties would give the minority coalition a majority in the lower house, but the cabinet would still need to find support from one more party in the Senate.
€10 billion gap
The pensioners’ party 50Plus is seen as the most likely candidate, even though MP Corrie van Brenk said the “signal is red” during Monday’s debate. Oosterhuis pointed out that the latest revision is almost identical to a plan 50Plus tabled previously in the upper house.
Finance minister Eelco Heinen’s reform would replace the current system of taxing investments and savings annually, based on estimated rates of return, with a tax levied when assets are sold.
The finance ministry has estimated that the switch to capital gains tax will leave a €10 billion gap in the short term because investors will no longer pay tax on their assets every year.
The Box 3 levy was struck out in 2021 when the Supreme Court ruled that the use of fictional interest rates was deemed to breach European law.
The government introduced a stopgap measure allowing taxpayers to challenge their tax bill by submitting their actual financial results, but this is costing the treasury an estimated €3.5 billion a year.
The Council of State, which advises the cabinet on the legal implications of its bills, said Heinen’s plans to start charging tax on capital gains from 2028 were too hasty and would cause administrative problems at the tax office. Heinen compromised by shifting the start date for the new tax to 2029, which will increase the budget shortfall.
