AMSTERDAM – The government is looking to slash taxes by EUR 5 billion after projections for growth of the national economy saw a strong upward revision.
The government of the Netherlands will reduce taxes faced by individuals by a total of EUR 5 billion, while simultaneously increasing government spending, according to new information released by the national Finance Minister Jeroen Dijsselbloem during the national budget plan announcement.
The cut to taxes will come in the form of reduction to income tax rates, cuts to the rate of employee taxes.
In addition, child-care benefits will be increased in an effort to encourage more parents to return to the workplace.
Government-sponsored elderly discounts will also be raised, as will housing allowances.
In addition to the tax breaks, the government will also spend EUR 650 million on accepting refugees, and an extra EUR 350 million on defense spending.
The increased spending and tax breaks come as the government announced that the growth of the national economy is rising, and is now forecast to hit 2.4 percent over the course of 2016.
Photo By: David Evers