Changes to the tax break for some foreign workers known as the 30% ruling are to be largely reversed in the September budget, despite calls by some coalition parties for its abolition, the Telegraaf reported on Friday.

The cabinet has decided to pull back on changes voted through by parliament earlier this year which would have moved the ruling to a sliding scale from 30% to 10% over five years. The changes were proposed by Peter Omzigt’s NSC, which is part of the ruling coalition.

Rather than introducing a sliding scale, the 30% figure will be cut to 27%, the Telegraaf said, without giving further details. The paper bases its claim on cabinet sources.

Companies had warned that further reductions in the tax break, which has been reduced twice in recent years, would discourage firms from doing business in the Netherlands.

An analysis for the finance ministry in June said cutting back a tax break for foreign workers whose skills are not available in the Netherlands will lead to 15% to 20% fewer highly-skilled migrants.

The independent review by economic research bureau SEO found that the 30% ruling was both effective and efficient, and contributed to the Dutch economy.  It confirmed concerns from businesses and experts raised last year that they will soon be unable to fill jobs and that the largely symbolic change to the allowance will actually do the Netherlands economic damage.