Tax plan 2008 (18-09-2007)
The Tax Plan for 2008 translates the cabinet’s ambitions into tax measures. The three spearheads of State Secretary De Jager – encouraging innovative entrepreneurship, greening and simplification – are all addressed in this plan albeit to varying degrees.
The Tax Plan 2008 marks a significant step forwards in greening the Dutch tax system. Together with trade and industry and the public, the cabinet aims to take transparent measures that better reflect the environmental effects of products in consumer prices. Measures to achieve this goal include the following:
- Introduction of a tax on flight tickets
- Introduction of a tax on packaging materials
- Polluting and uneconomical cars will become more expensive; environmentally friendly and economical cars cheaper
- Increase of axcise duties on environmentally unfriendly fuels
Encouraging labour participation is one of the proposals of this government. Work enables people to participate in society. More people engaged in employment means that the costs of ageing can be better met. That is why women and people on lower incomes are encouraged to participate in the labour process and extend their working hours. This is realised by a variety of measures such as:
- Gradual abolishment of the general tax credit paid to partners earning no income or a low income
- Intensifying the earned income tax credit
- Intensifying the income-related supplementary combined credit
In addition to this, a large number of other tax measures are proposed. A selection:
- Gradually shifting a part of the tax on Motor Cars and Motor Cycles to the Motor Vehicles Tax pending the introduction of a kilometre tax levy
- Raising excise on beer and tobacco
- Maintaining the lower VAT rate for fairs and other attractions
- Topping up fiscal support for pension accrual (delayed to 2009)
- Adjusting imputed income from an owner occupied dwelling for houses with a valuation of real property value of more then 1 million euro (delayed to 2009)
- Restricting the deduction of special expenses but lowering the threshold
- Making housing associations liable to corporation tax on all their activities
The 2008 Tax Plan comprises two legal proposals: the 2008 Tax Plan stating measures that affect the budgetary and purchasing power situation for next year and the legal proposal entitled Other Fiscal Measures for 2008, stating measures not covered by this definition but to take effect in January 2008.