AMSTERDAM (Reuters) – Dutch lawmakers have backed the introduction of a tax on share buybacks by listed companies and a higher tax on banks to cover an increase of the minimum wage and larger childcare support in 2024.
A majority of lawmakers on Thursday voted in favour of the proposals, although outgoing Prime Minister Mark Rutte advised against them as he said it could drive companies out of the country.
The tax on share buybacks is likely to bring in around 1.2 billion euros ($1.3 billion), a coalition led by the Labour and Green parties said, while the proceeds from a levy on banks should increase by 70% to around 850 million euros.
Together with higher tax rates for the highest incomes the plans should cover around 2 billion euros in proposed extra spending on the minimum wage and childcare support.
The proposals were the result of debates on what amendments to make to the caretaker government’s 2024 budget following elections to be held on Nov.
22.
With the previous coalition government having fallen apart, parties were free to vote their own way, making it potentially easier to push amendments through than if they had had to vote as a coalition bloc.
It is unclear when the share buyback tax would come into effect, as Rutte said it would probably be impossible to introduce it before the end of the year, and elections will have changed the setup of parliament by then.
Polls indicate parties that support a hike in the minimum wage will still have a majority after the elections.
($1 = 0.9388 euros)
(Reporting by Bart Meijer; Editing by Hugh Lawson)
