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The Netherlands should focus its future tax reform efforts on improving efficiency, reducing the debt bias, and shifting the tax burden from labor toward consumption and property, the International Monetary Fund has said.
The IMF said that while the country has made efforts to reduce its labor taxes through a package introduced in 2016, "more should be done and faster."
It added that housing tax reforms should be implemented to level the fiscal playing field for private rental market housing.
The IMF also recommended that the country reform its "inefficient" rules on capital income taxation and eliminate distortions associated with multiple value-added tax rates.
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