Date: February 11, 2025
On February 11, the Senate debated the Budget Statements for Finance and National Debt 2025 (36.600 IX). This bill includes the budget for expenditures and revenues for the year 2025 from the Ministry of Finance and the National Debt. The only speaker was Senator Van Rooijen from the 50PLUS party. He addressed issues such as the financial coverage of reversing the VAT increase, merging budget proposals, the use of approving policy decisions, policy decisions in anticipation of legislation, corporate tax in box 3, and the pension system.
‘VAT Chaos’
Senator Van Rooijen began his speech with the VAT increase and the agreements around it. The government still needs to find alternative coverage for the financial gap that will arise. He feared that the elderly would become the victims, and asked State Secretary Van Oostenbruggen for Fiscal Affairs, Tax Administration, and Customs to ensure that they would not bear the brunt of the VAT chaos. He also pointed to the broadly supported Hoekstra motion from 2015, advocating against linking independent legislative proposals. The 50PLUS party takes a principled stance against this: linking sweet and sour prevents the Senate from responding to individual proposals. Van Rooijen asked for a commitment on this issue.
Challenges
Van Rooijen subsequently requested the government not to adhere to former State Secretary Van Rijs box 3 proposal. The wealth growth tax is not based on realistic returns and may lead to issues and disapproval by the Supreme Court. He also mentioned that solving fiscal challenges through policy decisions in anticipation of legislation is unwise. The senator referred to resolving challenges encountered with the integration of three large pension funds since January 1, 2025. With such policy decisions, parliament is sidelined. Former State Secretaries Van Rij and De Vries advised great restraint in making policy decisions. According to Van Rooijen, such approving decisions were also not constitutionally correct, as they violated Article 104 of the Constitution.
Government Response
Minister Heinen of Finance called the questions from 50PLUS untimely. The Joseph amendment is still under consideration in the House of Representatives. He stated that the questions should be addressed more carefully to the Minister of Social Affairs and Employment and promised that Van Rooijens request for clarification of the figures would be answered in the letter that the minister would still send in response to the Joseph amendment.
Other questions were answered by State Secretary Van Oostenbruggen. He said the VAT increase would not specifically affect the elderly. The coverage of the VAT increase is still subject to debate, with the House of Representatives taking the lead. Regarding the Hoekstra motion, the State Secretary said that major legislative proposals are already included separately as much as possible. However, it is sometimes important to treat sweet and sour in conjunction, especially when it comes to the Budget Memorandum. Concerning box 3, the State Secretary called the current system unbalanced. An urgent approach is needed, he said, to prevent revenue loss for the government. He also indicated that he would return shortly to Van Rooijens idea of establishing an advisory committee. Regarding the approving policy decisions, Van Oostenbruggen said that this instrument is already used with restraint.
Motions
Senator Van Rooijen expressed disappointment with the governments responses and submitted two motions: 36.600/36.600 IX, E, co-signed by CDA Senator Bovens, and 36.600, F, co-signed by BBB Senator Kroon. The first motion concerns decoupling independent legislative proposals. Two were linked in the Tax Plan 2025, depriving the Senate of the opportunity to judge them. The second motion asks the government not to make approving policy decisions: a policy decision is not a law and sidelines both Houses. An alternative is the emergency law. Both motions were discouraged by State Secretary Van Oostenbruggen. Voting on the bill and the motions will take place on Tuesday, February 18.