Income tax for workers to rise by 4 billion euros net

Income tax for working individuals in the Netherlands is set to increase by approximately 4 billion euros next year. This amount is expected to rise to 8 billion euros over the long term.

Income tax for working individuals in the Netherlands is set to increase by approximately 4 billion euros next year. This amount is expected to rise to 8 billion euros over the long term.

Business leaders in Amsterdam are raising concerns that the city's economic growth is under pressure due to local government policies. They warn that increased costs, regulatory burdens, and a lack of focus on entrepreneurship are harming the business and investment climate, leading to a decline in lucrative business travelers.
Leaked government tax plans reveal that taxes on alcohol, flowers, and balloon flights will increase ahead of Prinsjesdag. Additionally, the cabinet intends to lower the elderly tax credit while slightly increasing the labor tax credit and eliminating the deduction for healthcare costs.

Starting July 1, 2028, employers in the Netherlands will be prohibited from deducting housing costs from the minimum wage of migrant workers. Minister Vijlbrief announced this change to the House of Representatives to end the current practice where employers can withhold up to 25 percent of the gross minimum wage for housing.

The Dutch government aims to increase the use of green gas, produced from sources like manure and food waste, by requiring energy suppliers to source sustainable alternatives to natural gas. However, members of parliament and critics are concerned that this policy will lead to significantly higher energy costs for households and the horticultural sector.
Internal documents reveal that the municipality of Amsterdam plans to cut 2,500 full-time jobs from its civil service to reduce expenses. This initiative includes significant staff reductions at departments like the GGD Amsterdam, with final decisions expected to be made by Alderman Hendrik Jan Biemond in the spring of 2027.
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