Setback for asset tax plan as BBB threatens to force Senate vote

The Dutch cabinet's proposed asset tax reform is facing a setback after the farmers' party BBB threatened to force a Senate vote. Earlier this year, MPs voted in favor of a new "box 3" tax on assets, but the Senate vote was postponed amidst speculation that the coalition partners VVD and CDA might vote against the plans. The cabinet aims to change the income tax system to tax investors and savers on the growth of their assets annually.

However, the two parties' senators prefer replacing box 3 with a capital gains tax. Right-wing opposition parties also favor this option, making the bill in its current form unlikely to pass. BBB senator Bart Kroon stated that he would force a vote in the Senate unless finance minister Eelco Heinen withdraws the plan, prompting a restart from scratch.

Heinen wanted to amend the bill within the current budget settlement to pass before 2028. The finance minister previously withdrew the plans once due to international criticism over potential investor losses. A new bill would not be enacted before 2029, resulting in a €3 bn annual loss for the Dutch treasury during this period.