Published On: Fri, Jan 11th, 2013

Total package financial reconstruction measures charted

WILLEMSTAD – The financial reconstruction measures from the government will include retrenchment and efficiency measures besides tax increases. This becomes clear from a summary circulating in the coalition, which also shows the estimated proceeds of the various measures.

Most of the proceeds will come from the revised pension scheme (aov): including a fluctuation fund of 133 million guilders in 2013 running up to 171 million guilders in 2016 (without the fluctuation fund this would be 66 to 171 million guilders); revision of the medical system: 148 million guilders in 2013 running up to 188 million guilders in 2016 including the fluctuation fund (without the fluctuation fund this would be 124 to 179 million guilders). A new policy after 2016 regarding dividend and/or license payments from government corporations is to yield 25 million guilders per year; nothing has been estimated yet for the coming year. Proceeds amounting to 7 million guilders are estimated in 2014 once the government corporations are made solvent.

An increase of the land-tax is to yield 11 million guilders per year. The land-tax is currently 34 percent for everyone. As from next year a differentiation applies: 0.4 percent for houses up to 350,000 guilders; 0.5 percent for houses between 350,000 and 750,000; and 0.6 percent for houses exceeding 750,000. The differentiation of the sales tax – also mentioned elsewhere in this newspaper – is meanwhile known: from 6 to 9 percent on luxury articles while basic needs are exempted from sales tax. It is estimated that this measure will yield 17.5 million guilders. To boost the export the government has also announced a reduction of the tax on profits for export facilities.

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