State Secretary Weekers to set up tax committee chaired by Kees van Dijkhuizen

On February 9th State Secretary of Finance, Frans Weekers, sent a proposal to the Second Chamber of Parliament to set up a committee charged with the task of redesigning the income tax system. The plan is to appoint Kees van Dijkhuizen, Chief Financial Officer at NIBC Bank, to chair the committee, with the other members being Jan Kees Bartel, Koen Caminada, Peter Kavelaars, Barthold Kuipers and Carla Smits-Nusteling.

The Second Chamber had earlier expressed a wish to set up this committee, which will work out a number of realistic scenarios for revising the personal income tax system. The committee members will specifically be asked to examine opportunities for substantially reducing wage and income tax rates. As the current government cannot afford a net reduction in taxes, the committee will concentrate on shifting the burden from wage and income taxes to taxes on consumption. The committee has also been asked to come up with proposals for simplifying the system of income taxes and allowances. These proposals are intended to result in a more cohesive and financially transparent system of tax deductions and allowances.

Just as in the Tax Agenda and Tax Plan for 2012, the key words for the committee will be simplicity, solidity and fraud-proof. As well as scenarios for the envisaged destination of the plans, the committee will also devise a series of concrete, feasible proposals, including a realistic timeframe for introducing the new system and any transitional arrangements. The committee is expected to complete its work in spring 2013.

The State Secretary has stated that he is fully confident that the committee will produce a good report.