The Council of State says the cabinet has not sufficiently justified its planned changes to the Box 3 wealth tax proposal. In its advisory opinion, the Council points to concerns from the Tax and Customs Administration, which says the changes would not be feasible before 2028.
The debate over how to fund the proposed changes is also creating “uncertainty and unrest”, according to the Council.
Under a bill currently before the Senate, tax would be based largely on increases in the value of assets, even if those gains have not yet been realised. The cabinet wants to change this approach and introduce a system based largely on capital gains from 2028. It aims to move entirely to a capital gains tax in 2030.
However, the Tax and Customs Administration is already under considerable pressure. The Council of State also notes that the cabinet plans to cut funding for the service. Introducing a new and complex tax system for only two years would therefore place a “heavy strain” on the tax authorities.
The Council of State believes the cabinet should instead withdraw the current bill and draft a new proposal for 2030. “This would provide the necessary calm and clarity.”
@anp | NEWS BRAINPORT
