Dutch Cabinet proposes budget amendments to secure parliamentary support

The Dutch minority cabinet, led by Prime Minister Rob Jetten, has submitted an amended budget proposal to Parliament aimed at securing broader support from opposition parties. Key measures include canceling planned cuts to disability and unemployment benefits for the current year, with future reforms to be negotiated with employers and unions.

To improve purchasing power, the government proposes reducing fuel excise duties by 2.1 billion euros next year, increasing the income threshold for the top tax rate, and adjusting labor credits. Regarding wealth taxation, the cabinet intends to transition 'Box 3' from taxing theoretical profits to taxing actual distributed profits starting in 2028. This transition will be partially funded by a temporary reduction in the Box 2 rate.

Jetten and Finance Minister Eelco Heinen stated they hope these concessions will foster wide-ranging support. The cabinet has expressed readiness to discuss additional topics with the opposition, including nitrogen policy, migration, and healthcare fraud, as they aim to pass the package through the Senate by the end of the year.