The 30% ruling which some foreign workers in the Netherlands can claim to cut their tax bill must be reduced as MPs agreed last year, NSC leader Pieter Omtzigt told reporters on Tuesday, during a break in the cabinet negotiation talks.

It is “very important” that the ruling be cut back in scope, Omtzigt said, because it unfairly enables some people to earn more than others who do the same jobs. The cost to the treasury is also some €700 million to €800 million in lost tax income a year and that, he said, “I consider to be a lot of money.”

The plan to cut the ruling from 30% over five years to 30%, 20% and 10% over the same period was drawn up by Omtzigt last year as a way of offsetting the interest on some student loans. 

It was voted through by a large majority of MPs on the last day of the previous lower house of parliament, before the new MPs took over.

But since then large parts of Dutch industry have sounded the alarm about the plans, saying it will make the Netherlands a less attractive place for international firms to do business. Last week it also emerged that the BBB, which is taking part in the coalition talks, and the CDA, back a rethink. 

BBB leader Caroline van der Plas reiterated that position on Tuesday, telling reporters that the 30% ruling will form part of the financial negotiations between the four parties.

She also welcomed reports that the cabinet is putting the final touches to a plan designed to keep big tech firms such as ASML in the Netherlands. “The economy would have a major problem if companies leave,” she said. 

Meanwhile, the finance ministry is carrying out a survey of workers and companies to assess how important the 30% ruling is to them. The results of the survey will be presented to the ministry in July and will “contribute to the decision-making in Dutch politics”, market research group SEO Amsterdam Economics said. 

Work started on the survey before it emerged that some parties were calling for a rethink. 

Dutch News has asked the finance ministry to comment, without success.