There is now a broad parliamentary majority in favor of a so-called solidarity levy on companies that profit from high energy prices, such as energy companies and oil companies. The cabinet must start to find out whether such an additional tax is possible for some companies.
“I think a solidarity levy is an interesting idea,” VVD party chair Sophie Hermans said Wednesday during the debate on the spring memo in the House of Representatives. Coalition partners D66 and CDA also called it an interesting and sympathetic idea.
Even before the debate, ChristenUnie called on the cabinet to investigate what legislation is needed to introduce a “targeted tax”.
The idea is not new. In March, Volt and Party for the Animals submitted a motion to introduce such a levy for fossil companies. The proceeds should go to the households that suffer most from the ever-increasing energy costs.
PvdA and GroenLinks had worked out something similar. The parties are all thinking of a higher, additional tax of 25 percent on profits.
In the spring there was still no majority for the plan. Not only the coalition parties, but also opposition parties such as PVV, SGP and JA21, were opposed at the time.
VVD does not want any measures at the expense of the business climate
The VVD still kept an open mind and wants to know what the possible effects on the business climate in the Netherlands are. “The economy must continue to run,” said Hermans.
A large part of the opposition wants the cabinet to allocate extra money this year to compensate the most vulnerable households for the prices that keep rising as a result of the war in Ukraine.
“What are we going to do at this point? Just examining a solidarity levy is not enough,” said PvdA party chair Attje Kuiken. Together with GroenLinks, she advocates, among other things, an additional energy surcharge of 500 euros and freezing rents.
Hermans shows ‘free compassion’ according to GroenLinks
Hermans showed sympathy and is considering reaching even deeper into the pocket to do “something extra” for people who are financially strapped. “I feel the urgency enormously,” he said.
GreenLeft leader called this “free compassion” from Hermans. “You negotiated the spring memo. There you should have talked about what buttons we can turn.”
The cabinet allocated a total of 6.4 billion euros to ease the pain of high inflation. There was an energy surcharge for people with low incomes, the VAT on energy bills is reduced and the excise tax on fuel was reduced.
Weren’t some of these companies trending to bankruptcy just a year or two ago when crude prices were like a third where they are now?
How to raise energy prices even more 101
Well, traditionally, when you raise taxes on an industry, they respond by raising prices. Soooo, this should be interesting….
I mean, from a company’s point of view, taxes are an expense. Expenses go up, prices go up. It’s pretty basic. When you tax something, you get *less* of it. That’s the point of tobacco taxes, for example, and for that matter, fuel taxes generally. Taxing the company as a whole is gonna have the same effect as raising the gasoline tax.
Sounds like an “extra profit tax”. Not working, chasing away business trust.
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There is now a broad parliamentary majority in favor of a so-called solidarity levy on companies that profit from high energy prices, such as energy companies and oil companies. The cabinet must start to find out whether such an additional tax is possible for some companies.
“I think a solidarity levy is an interesting idea,” VVD party chair Sophie Hermans said Wednesday during the debate on the spring memo in the House of Representatives. Coalition partners D66 and CDA also called it an interesting and sympathetic idea.
Even before the debate, ChristenUnie called on the cabinet to investigate what legislation is needed to introduce a “targeted tax”.
The idea is not new. In March, Volt and Party for the Animals submitted a motion to introduce such a levy for fossil companies. The proceeds should go to the households that suffer most from the ever-increasing energy costs.
PvdA and GroenLinks had worked out something similar. The parties are all thinking of a higher, additional tax of 25 percent on profits.
In the spring there was still no majority for the plan. Not only the coalition parties, but also opposition parties such as PVV, SGP and JA21, were opposed at the time.
VVD does not want any measures at the expense of the business climate
The VVD still kept an open mind and wants to know what the possible effects on the business climate in the Netherlands are. “The economy must continue to run,” said Hermans.
A large part of the opposition wants the cabinet to allocate extra money this year to compensate the most vulnerable households for the prices that keep rising as a result of the war in Ukraine.
“What are we going to do at this point? Just examining a solidarity levy is not enough,” said PvdA party chair Attje Kuiken. Together with GroenLinks, she advocates, among other things, an additional energy surcharge of 500 euros and freezing rents.
Hermans shows ‘free compassion’ according to GroenLinks
Hermans showed sympathy and is considering reaching even deeper into the pocket to do “something extra” for people who are financially strapped. “I feel the urgency enormously,” he said.
GreenLeft leader called this “free compassion” from Hermans. “You negotiated the spring memo. There you should have talked about what buttons we can turn.”
The cabinet allocated a total of 6.4 billion euros to ease the pain of high inflation. There was an energy surcharge for people with low incomes, the VAT on energy bills is reduced and the excise tax on fuel was reduced.
Weren’t some of these companies trending to bankruptcy just a year or two ago when crude prices were like a third where they are now?
How to raise energy prices even more 101
Well, traditionally, when you raise taxes on an industry, they respond by raising prices. Soooo, this should be interesting….
I mean, from a company’s point of view, taxes are an expense. Expenses go up, prices go up. It’s pretty basic. When you tax something, you get *less* of it. That’s the point of tobacco taxes, for example, and for that matter, fuel taxes generally. Taxing the company as a whole is gonna have the same effect as raising the gasoline tax.
Sounds like an “extra profit tax”. Not working, chasing away business trust.