Tax

President Donald Trump has threatened to immediately impose a 100% import tariff on all goods from any European nation that implements a digital services tax targeting American tech giants. In response, the European Commission defended its member states' sovereign right to regulate their own economic activities and vowed to act quickly and forcefully against any potential U.S. levies.

Economic inequality between Dutch households is increasing, and the tax system may play a role, the CPB says. High earners often pay less tax by using private limited companies, while wealth gaps continue to grow. The agency warns that equal opportunities could come under pressure if the trend persists.

Dutch opposition parties are calling for a windfall tax on energy giants to help households struggling with rising fuel and living costs. The proposals include price caps and tax cuts to offset the economic impact of international conflict. This movement puts increasing pressure on the cabinet to move beyond monitoring and take direct financial action.

The implementation of the trade deal between the European Union and the United States has moved a step closer. Last summer, the European Commission and the US government agreed that the US would apply a general tariff of 15 percent to most European products. Conversely, there will be no increased tariffs and Brussels itself will scrap tariffs. These proposals still need to be ratified but do a general direction of the trade agreement.

Eelco Eerenberg is set to take over as the new State Secretary for Finance with a focus on overhauling the Dutch wealth tax system. The move follows the sudden withdrawal of the previous candidate and comes ahead of the new cabinet's official start on Monday. Investors remain watchful as the proposed reforms move toward the Senate for further debate.

The Dutch tax authority has defended its continued use of algorithms while promising to improve its ethical standards. The organisation recently received the infamous "privacy prize" for its digital practices, leading to a public discussion on how to balance efficiency with legal rights.

The Dutch House of Representatives has passed a major reform to the wealth tax system, with actual asset growth set to be taxed from 2028. The move follows years of legal challenges against the previous method of taxing assumed profits. However, further changes are already being requested to ensure that investors only pay tax when they sell their assets.