On September 13, 2012, the Netherlands went to the polls for the House of Representatives elections, and less than a week later it was Budget Day again. It is clear that a new cabinet has not yet taken office. The previous cabinet fell in April and therefore did not have time to deliver a budget. The budget as announced on Budget Day 2012 is therefore no ordinary budget, written by the cabinet. The 2012 budget is an agreement that was hastily formed in May 2012 by various House of Representatives factions: the so-called Kunduz Agreement or Spring Agreement. This article lists the measures from this agreement. First of all: it remains to be seen whether all measures will actually be implemented. Not all parties signed the agreement at the time. For example, the PvdA did not sign at the time and that party is now one of the two big winners of the House of Representatives elections. The other winner, the VVD, did sign but promised to withdraw a number of measures during the election campaign.
As long as the new House of Representatives or the new cabinet makes no changes, the measures below will remain in force. It is expected that the vast majority of measures will continue. The measures for the accelerated introduction of the higher state pension age and the VAT increase have already been approved by both the Senate and the House of Representatives. These are very difficult to stop. Furthermore, the lower transfer tax measure already came into effect on July 1, 2012.
The most important measures from the Kunduz agreement:
Concern
- The mandatory deductible will be 350 euros (was 220 euros). The lowest incomes are compensated.
- The walker and bandages are included in the basic package.
- From now on, a personal contribution of 25 percent will be required for hearing aids.
- Anyone who comes to an institution for specialist medical care will now pay a personal contribution of 7.50 euros per day of stay. That is a contribution to nutrition.
- Oral surgeons may declare less.
- The reimbursements for transport costs to and from day care institutions will be reduced.
- 100 million euros extra for prevention and palliative care.
- The Minister of Health, Welfare and Sport is launching an investigation into reducing the salaries of specialists.
- There will be fewer cuts in the Personal Budget (PGB).
- The personal contribution to mental health care is limited.
- The so-called IQ measure for the disabled is being reversed.
Taxes
- As of October 1, 2012, the high VAT rate is 21 percent (was 19 percent).
- Commuting will be taxed by abolishing the tax-free travel allowance. The commuting kilometers with the company car are also taxed. The bill will ultimately be submitted by the new cabinet.
- For a total of 800 million in additional levies on natural gas, tap water, coal, red diesel and the Eurovignette.
- Excise taxes on cigarettes will increase by 35 cents per pack of cigarettes. Rolling tobacco will become 60 cents more expensive.
- Excise duties on spirits will increase by 6 percent. Those on beer will increase by 10 percent and the excise duties on wine will increase by 15 percent.
- The tax brackets will not receive an inflation adjustment as usual.
- The bank tax is doubled.
- From now on, we will pay 75 percent tax on departure bonuses of 531,000 euros or higher.
- In 2013, employers will pay a one-off 16 percent extra tax on wages of 150,000 euros and higher.
Housing market
- From January 1, 2013, the mortgage interest deduction will be limited for new cases. The bill will ultimately be further developed and submitted by the new cabinet.
- Tenants with an annual income of 33,000 to 43,000 euros will receive an additional rent increase of one percent as of July 1, 2013 if the landlord decides to do so. This is in addition to the inflation adjustment.
- A landlord tax will be introduced in 2013. This bill will ultimately be submitted by the new cabinet.
- The transfer tax will now remain 2 percent.
Social Security
- The increase in the state pension age to 67 will be accelerated and will start immediately in 2013. After 2023, the state pension age will be adjusted to the then applicable life expectancy.
|
Retirement age |
Born between |
AOW starts |
|
65 |
before 1948 |
before 2013 |
|
65 years and 1 month |
Jan – Nov 1948 |
in 2013 |
|
65 years and 2 months |
Dec 1948 – Oct 1949 |
in 2014 |
|
65 years and 3 months |
Nov 1949 – Sep 1950 |
in 2015 |
|
65 years and 5 months |
Oct 1950 – July 1951 |
in 2016 |
|
65 years and 7 months |
Aug 1951 – May 1952 |
in 2017 |
|
65 years and 9 months |
June 1952 – March 1953 |
in 2018 |
|
66 years |
Apr – Dec 1953 |
in 2019 |
|
66 years and 3 months |
Jan – Sep 1954 |
in 2020 |
|
66 years and 6 months |
Oct 1954 – Jun 1955 |
in 2021 |
|
66 years and 9 months |
Jul 1955 – Mar 1956 |
in 2022 |
|
67 years |
Apr – Dec 1956 |
in 2023 |
- Dismissal law is being relaxed and the payment of unemployment benefits is changing. The employer pays the benefit for the first six months. But the amount and duration of unemployment benefit do not change. This bill will ultimately be further developed and submitted by the new cabinet.
- There will be a new statutory dismissal scheme. The procedure is shortened and employees are better protected against unfair dismissal. This bill will ultimately be further developed and submitted by the new cabinet.
- The severance pay will change significantly. From 2014 onwards, the compensation will be lower per year worked (minimum a quarter of a month’s salary per year worked up to a maximum of half a month’s salary). This compensation is not paid into your account but forms a personal budget for training and for work-to-work processes. This bill will ultimately be further developed and submitted by the new cabinet.
- Child benefit will not increase in 2013 and 2014.
- The personal contribution for childcare will be increased. The initial increase of 15 euros per month will not take place.
- Families with a joint income higher than 118,000 euros no longer receive childcare allowance for the first child.
Other measures
- The animal police will be abolished.
- The prisons are being simplified.