The incoming Dutch government plans to introduce a surcharge on income and corporate taxes to raise around €5 billion annually for higher defence spending, coalition parties said on Friday (30 January).
The measure — labelled a “freedom tax” — is intended to help the Netherlands meet updated NATO targets agreed in 2025.
Key developments:
• Defence spending to rise from ~2% of GDP to 2.8% by 2030 and 3.5% by 2035
• Total defence outlays projected to increase by €19 billion per year
• Funding to come from tax rises and broad spending cuts, including healthcare and welfare
• Budget deficit capped at around 2% of GDP, alongside new housing investment
“This is a new course for our country,” said Rob Jetten, leader of D66.
The minority coalition — comprising D66, the Christian Democrats, and VVD — holds 66 of 150 seats and will require opposition backing to pass legislation.
ℹ️ Reuters
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