Ministers finalise 2019 spending plans, dividend tax will be scrapped

The Dutch cabinet and coalition parties have finalised the spending plans for 2019, which will be presented in parliament on Tuesday, September 18, finance minister Wopke Hoekstra told reporters on Thursday evening.

Hoekstra was speaking after final touches were made to the plans by parliamentary party leaders in a meeting at the finance ministry. ‘We are happy, it is very good for the CDA,’ Christian Democrat leader Sybrand Buma said after the meeting.

The impact of the plans on household spending still needs to be finalised but party leaders say everyone will have more cash next year. ‘It is looking good,’ said Alexander Pechtold, leader of the liberal democratic party D66.

The biggest problem facing ministers has been finding an extra €600m to pay for the decision to scrap the tax on dividends. Originally the cost was €1.4bn a year, but that has since gone up to nearly €2bn.

That will be now be paid for by reducing corporation tax to 22% rather than 21%, as proposed earlier, broadcaster NOS said.

The main plans in the budget – an extra €1.2bn for the police, defence, justice ministry, education and healthcare – were agreed before the summer, website Nu.nl said.

As yet it is unclear if any changes are planned to the government’s decision to reduce the 30% ruling from eight to five years, without a transition period for current beneficiaries.