Categories: Politics

PvdA Member of Parliament Nijboer: ‘Abolish the innovation box’ Related articles

The so-called ‘innovation box’ should, if it is up to PvdA Member of Parliament Henk Nijboer, be abolished. Companies that innovate receive a tax break, but in practice it is mainly large companies that benefit from the scheme. “Whatever you think, most always end up with big companies making more with share buybacks than with investments.”

Henk Nijboer advocates a fairer tax burden. (Peter Hilz/ANP)

Chip machine maker ASML and booking platform Booking benefited greatly from the program last year: together the companies saved €1.2 billion. This has led to criticism, because small businesses have benefited much less. According to Nijboer, the scheme therefore misses its target, because it is precisely the smallest companies that should benefit from an innovation allowance. “Actually we should shift the tax burden to big companies, but that’s not the case,” says Nijboer.

“The tax authorities are already busy enough.”

Henk Nijboer, Member of Parliament for the Labor Party

If it’s Nijboer’s turn, the innovation box in its entirety can go out the window. “This way we are simplifying the tax system,” he says. Furthermore, he sees no added value in adjusting the regime: “You can fine-tune it again, but the tax authorities are already busy enough.”

Furthermore, the PvdA politician believes that there is already a regulation for innovation: the Research and Development Promotion Act (WBSO). Under this scheme, companies can be reimbursed for personnel wage costs, provided they have been invested in development and research. Businesses can also deduct costs and expenses incurred for the same purpose from the tax. According to Nijboer, this scheme works much better than the innovation box and more efforts should be made.

At present, companies still receive a corporate income tax rebate thanks to the innovation box. “We simply need a clear profit tax,” says Nijboer. ‘The big advantage of this is that companies are only taxed if they actually make a profit. Big companies currently contribute too little to our collective structures. The time has therefore come to shift the tax burden.

Author: Niels without cabbage
Source: BNR

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