Council of State critical of haste with box 3, budget discussions further under pressure

The Council of State has criticized the government's plan to introduce a new capital gains tax via box 3, advising against its implementation due to haste and lack of thoroughness. The execution could negatively impact the Tax Authority and banks. While the Council does not oppose the content, it suggests delaying any action until after 2030, contrary to Finance Minister Heinen's goal of 2028. Box 3 has become a contentious issue in Dutch politics, with parties seeking to change how wealthy individuals are taxed. Currently, taxes are based on a fictitious return rather than actual gains, leading to significant costs for the government. There is ongoing debate about funding these changes, and banks have expressed concerns about the time needed for IT adjustments. The future of the plans will be clarified in upcoming negotiations regarding the tax plan.