In 2022, the state will have received more corporate income taxes than ever before. The total proceeds were over 38 billion euros, eleven billion euros more than budgeted. And that means a big windfall for the treasury. “It’s not very often you wake up to a windfall like this.”
“Great news and also a compliment to companies that have managed to adapt quickly,” says Jan Paternotte, leader of the D66 party in the House of Representatives. “We managed to become completely independent of Putin’s oil and gas. We’ve even managed to grow the economy, despite all the problems people have obviously encountered.’
Despite the war in Ukraine, many companies are doing well. They pay corporation tax, better known as profit tax, on the profits they make. And that is considerably higher, after a record amount of corporate income tax was also levied in 2021.
At the same time, the cabinet also has to meet considerable costs, for example for the energy ceiling that has been set. But those costs are lower for now. “This is basically good news,” says Paternotte.
However, costs for households continue to rise due to rising interest rates and high inflation. However, core inflation, which excludes energy and food prices, is still high. As a result, consumers pay several times more than in previous years. According to Paternotte, the government is already doing a lot to support citizens. ‘The state has increased health benefits and the child budget. In addition, the minimum wage will increase, as will benefits and the state pension. Even 10 percent was added to that.’
Cut
The possibility of cuts decreases with a stroke of luck, thinks Paternotte. But Holland’s problems aren’t over yet. “There are some big crises that the Netherlands really need to make decisions about.” For example, the nitrogen crisis is causing a lot of uncertainty among entrepreneurs. “I understand that, because it’s about permits and investments.”
Furthermore, the climate issue is becoming more and more important. In the United States, it has been decided to heavily subsidize companies to accelerate greening. “We shouldn’t sit still in the Netherlands and think that things will go by themselves,” says Paternotte. ‘We also need to ensure that entrepreneurs can become more sustainable faster. This is the economy of the future and if we don’t build it now, we won’t automatically remain a rich country.’
Increase sustainability
As for D66, sustainability takes priority over corporate income tax increases, something GroenLinks stands for. “The profit tax has already been raised and priority should be given to climate deals with big companies,” thinks Paternotte. “That will help the government and eventually those companies will benefit as well.”
As for Paternotte, the Minister of Economy, Micky Adriaansens, should put more pressure on this. “It’s not all free.” The government’s climate fund has €35bn ready to strike good deals with big companies. “So we’re talking about support and investment from those companies.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
