Crisis engulfs Dutch government ahead of crucial tax vote

The Dutch government faces a crisis ahead of a crucial vote on the 2027 tax plan. DutchNews.nl reported that the right-wing liberal VVD will vote against its own cabinet’s tax plan if coalition partners help pass an opposition amendment raising taxes on the very wealthy. VVD parliamentary leader Ruben Brekelmans told MPs during a reopened debate that the party would not back the bill if the amendment is adopted. The amendment was drawn up by left-wing Pro and pan-European progressive party Volt and is supported by centrist D66 and the Christian Democrat CDA.

VVD leader Dilan Yesilgöz, who is also defence minister, called for a “fundamental reset” of the cabinet and said the deal breached the coalition agreement. Brekelmans said he had been caught off guard by the deal and declined to say what would happen next, stating, “I’m not going to speculate about what-if questions.”

The amendment introduces a new top rate of 38.5% on returns above €60,000 on box 3 taxes, the levy on savings and investments, while the basic rate falls from 36% to 35.5%. The €1 billion raised will go towards cutting the lowest rate of income tax. Only €588 million of the €1 billion is linked to specific measures, while the remaining €412 million is a target to be met by tackling tax constructions used by the wealthy. Pro and Volt have suggested an “exit tax” on millionaires who leave the country.

It is not certain the amendment will pass. Christian-social ChristenUnie and pensioners’ party 50PLUS, which had conditionally backed the tax plan, have doubts about how the package is funded and have not yet said how they will vote. If they oppose the amendment, it may fail, leaving D66 and the CDA without the senate majority they need. According to NOS, the VVD is urging the ChristenUnie to vote against, while Pro leader Jesse Klaver is trying to win over its leader, Mirjam Bikker.

The three parties in Prime Minister Rob Jetten’s minority cabinet have 66 of the 150 seats in parliament, 10 short of a majority, so they rely on opposition parties to pass legislation. Employers’ organisations VNO-NCW and MKB-Nederland said the country could not afford a political crisis and objected to businesses potentially footing the bill. ING chief economist Marieke Blom told NOS the amendment would have very little effect on the Dutch economy and said she did not expect millionaires or companies to leave the Netherlands because of it. She added, “A cabinet collapse would create new political uncertainty, and I’m worried that we would grind to a halt.”

Prime Minister Rob Jetten said “yes” when asked on arrival whether things would work out. Votes on the amendments and the full tax plan are due after the debate. If the cabinet does fall, an early general election could be held alongside the provincial and water board elections on March 17 next year, NOS reported. It would be the second cabinet in a row to fall within a year.