Simpler tax system: a review of tax arrangements | News item

News item | 23-02-2023 | 11:50

The Dutch are asked for input

The government is examining tax regulations in order to simplify the tax system. This checks whether the tax schemes can still be socially and economically justified and whether a scheme contributes efficiently to the intended goal. The intention of this government is therefore to make proposals to improve or abolish tax schemes. The Dutch can provide input through an internet consultation. You can do this through April 9 internetconsultatie.nl. Around the summer, the cabinet will present the first proposals for simplifying the tax system.

Recently, society, the House of Representatives and the media have drawn a great deal of attention to the complexity of our tax system and its consequences. By improving or abolishing tax arrangements, the tax system becomes less complex, more practicable, more targeted and economically efficient.

Purpose of tax scheme

Tax arrangements ensure that certain groups of taxpayers have to pay less tax. This concerns, for example, exemptions, discounts or a reduced rate. For example, tax arrangements lead to a more complex tax system. This is because every exception also leads to more complexity. In addition, tax arrangements lead to lower tax revenues. It is therefore important to make sure that these schemes do what they are intended to do and that their purpose has not been obsolete in the meantime. That is why we periodically review whether the tax schemes are still efficient and effective.

Input from the Dutch

We are now asking Dutch people through an internet consultation what they think about various tax schemes. This input is important because citizens and businesses use the schemes. Through the consultation, citizens, companies or other organizations can clarify which regulation(s) they find very important or not. Suggestions for improvement can also be made.

Approach

The internet consultation is part of a larger process. All tax schemes are also assessed by the Ministry of Finance on the basis of efficiency, effectiveness, feasibility, explainability and the need for government intervention.

In addition to the internet consultation and the assessment of the schemes, discussions are also held with social parties and experts. In this way, suggestions and ideas can be collected from different angles to improve the various tax schemes. Around the summer, the first proposals for simplifying the tax system will be shared with the House of Representatives.

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