Less is more?

The Dutch government has decided to change the tax rates. After the change from 19% VAT to 21 % VAT a couple years ago. The low VAT rate of 6 % is being brought back to just the most basic needs, such as the food you buy in the supermarket.

Most of the other items that used to have the 6 % VAT rate applied will now get a 21 % VAT rate. This includes labour for builders, such as masons, carpenters etc., but also some other occupations such as the hairdresser, for example.

At the same time they are reducing the taxes that need to be paid on the wages, which means that you will get more money on your bank account with the same gross wages.

According to the government the amount of money an average person would get extra is somewhere in the vicinity of 800 euros per year.

However, people say that with the higher taxes, they will probably need to spend double that amount.

Also, the taxes for cars are changed. Except for electric cars that are counted as having zero emission, all cars will now get a high rating for taxes. With most families owning a car that will not meet the new requirements, that means extra costs for the majority of the people.

Of course, we will have to see how it works out, but I have a feeling that the government is trying to paint a pretty picture with more money to spend where in fact they try to rake in even more through the backdoor.

Less is more?

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