Title: Dutch Budget Day 2025: Focus on Defense, Police, and Tax Adjustments
Subheading: No Increase in Purchasing Power, Shift in Tax Cuts, and Strengthened Security Measures
Introduction:
As the Dutch Budget Day approaches, significant details have emerged regarding the Schoof I Cabinet’s plans for next year’s financial allocations. The leak reveals a mix of economic adjustments, tax reforms, and allocations to the defense and police sectors.
Purchasing Power and Tax Measures:
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Purchasing Power: Contrary to previous expectations, the purchasing power is set to rise by only 0.7 percent in 2025, rather than the 1.1 percent forecasted by the Bureau for Economic Policy Analysis (CPB). This decision reflects the cabinet’s adherence to the advice of CPB director Pieter Hasekamp, who suggested delaying tax cuts to later years.
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Tax Cuts: The cabinet will not reduce tax breaks for foreign workers, maintaining the 30 percent tax-free salary for expats for the initial years. However, the coalition party NSC and some other parties have criticized this policy, pushing for a gradual reduction to 10 percent.
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Income Tax: A new level of income tax will be introduced, which will lower the tax rate on the first part of an individual’s income, resulting in tax savings for many.
Allocations to Security and Other Sectors:
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Defense and Police: The police will receive an additional tens of millions of euros annually, while the defense sector will see increased funding due to economic growth.
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Child Benefits: Child benefits will be increased, offering financial support to families.
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Land Transfer Tax: The government will lower the land transfer tax for landlords, reversing a recent trend of slight tax increases.
Social Measures and Early Retirement Scheme:
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Free School Meals: The scheme for free school meals will be extended, providing relief to poorer families.
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Early Retirement Scheme: A new early retirement scheme will be introduced, replacing the existing tax exemption for companies to retire employees in heavy occupations.
Conclusion:
The upcoming Budget Day reveals a strategic focus on economic stability, defense, and social measures. With no increase in purchasing power, a shift in tax cuts, and a commitment to public safety, the Dutch government aims to balance economic considerations with the needs of its citizens.
Reporting by ANP
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