CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IMF Welcomes Dutch Tax Reforms

IMF Welcomes Dutch Tax Reforms

by Ulrika Lomas,, Brussels

19 June 2015

The International Monetary Fund (IMF) has welcomed the Dutch Government's plan to levy the headline value-added tax rate on a broader range of goods and services.

The Government said that it hopes to generate additional revenues worth EUR5bn (USD5.6bn) by limiting the scope of the reduced VAT rate. Currently the headline rate is 21 percent and a reduced rate of six percent is levied on water and basic foodstuffs; some pharmaceuticals; books, newspapers, and periodicals; admissions to cultural services and amusement parks; agricultural inputs; hotel accommodation; restaurant and catering services; bicycles; clothing; and hairdressing services.

Under recently announced plans, the reduced rate would only be levied on basic foodstuffs.

The IMF also welcomed reduced tax incentives for real estate, and a reduction in labor taxes. It said in a statement following a staff mission to the country that these and other reforms could potentially increase the efficiency of the tax system and promote higher employment.

The IMF encouraged the authorities to simplify areas of taxation that have become complicated and burdensome for both the tax administration and taxpayers.

TAGS: tax | economics | value added tax (VAT) | Netherlands | tax incentives | fiscal policy | International Monetary Fund (IMF) | food | tax rates | tax reform | services

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »