Tax plan 2027: purchasing power slightly up, VAT increase for ornamental horticulture postponed

The Dutch government is set to implement a €1.5 billion improvement in purchasing power, primarily due to the postponement of the freedom contribution. This decision follows an extra cabinet meeting where adjustments to the tax plan and Box 3 were confirmed. The freedom contribution, proposed by the CDA to impose additional taxes on labor for defense funding, has been scrapped for next year, saving €347 million. Fuel taxes will not increase, and a planned VAT hike on flowers has been canceled. The specific healthcare cost deduction will remain but will be more targeted. Additionally, the new wealth tax in Box 3 has been postponed from 2028 to 2029, pending feasibility. The plans will be debated in the Tweede Kamer tomorrow.