THE HAGUE, 19/11/05 - The Lower House has voted through the 2006 Tax Plan. On a number of points, parliament has introduced amendments to the cabinet's plans.
One of the amendments means that duties on spirits will be cut. A bottle of whisky or rum will thus become about 1 euro cheaper.
Additionally, people will have until 1 July to decide whether they want to avail of the existing wage-savings scheme (spaarloonregeling) or the new career savings scheme (levensloopregeling) being introduced on 1 January. Originally, the cabinet wanted this choice to be made by 1 January.
People who voluntarily provide long-term care for a sick family member or friend will from 2007 be given a fiscal discount of 250 euros. This perk is for people who provide care for at least six months for eight hours a week. Around 250,000 people are expected to be eligible.
As well, administration for companies regarding the private use of the company's commercial vans will be simplified. Employers can forbid private use or pay 300 euros per year. They do not then have to keep any records of the number of non-business kilometres over which the vehicle is driven.
Other key measures:
- corporate tax on earnings will go down to 29.6 percent. - the users component of property tax (OZB) will disappear. - the annual increase in fuel excise duties in line with inflation will not occur on 1 January. - purchase tax on cars and motorbikes (BMP) will from 1 July be linked to fuel consumption. Clean vehicles (energy labels A and B) will receive a discount of up to 1,000 euros, while polluting vehicles (energy labels D, E, F and G) receive a surcharge of up to 540 euros. - the tax-free expenses allowance that voluntary workers can receive will go up to 1,500 euros - the general tax-free allowance, the fixed amount everyone can deduct for tax purposes, will go up by 78 euros to 1,972 euros. - There will be a single tax allowance for children (currently, there are three), the amount to be determined by the total income of the members of a household. A total income of up to 28,521 euros will qualify for the maximum allowance of 892 euros.
