The Government of the Netherlands may introduce a capital gains tax next year as it seeks to align the country’s approach to wealth taxation with that of other European countries.
Dutch Finance Minister Eelco Heinen announced the proposal in the Hague during the government’s budget day statement, Bloomberg reported.
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Under the proposed system, investment gains would be taxed when assets are sold. This would replace the current framework, which can levy taxes on assumed returns or unrealised increases in asset values.
The new system will “contribute to the goal of increasing future earning power, improving the investment climate and stimulating economic growth”, the news agency quoted the minister as saying.
A previous attempt to reform the regime by taxing unrealised gains prompted opposition from investors and remains stalled in the Senate.
Businesses and employees have also criticised years of disputes and uncertainty surrounding the Netherlands’ tax treatment of global assets.
Heinen’s proposal seeks to resolve the impasse as the country faces continuing budget pressures, similar to those confronting other European governments.
Fragmented parliaments and structurally rising expenditure requirements have often turned routine fiscal policies into lengthy negotiations, adding pressure to markets, according to the Bloomberg report.
Prime Minister Rob Jetten’s coalition is now expected to face months of negotiations to secure parliamentary backing, it added.
The announcement comes after weeks of union-led strikes opposing $7.5bn (€6.5bn) in welfare reductions.
The action disrupted public transport and affected operations at Heineken and the Port of Rotterdam.
