Second Chamber: Minima on BES Islands exempt from tax after all

The site DossierKoninkrijksRelaties reports that as of 1 January, low-income residents in the Caribbean Netherlands will no longer pay taxes on their wages or benefits, thanks to a unanimously adopted “reparation motion” by the Second Chamber this afternoon.

The motion was introduced to mitigate the unintended consequences of a previous tax amendment that disproportionately affected low-income residents. This amendment, spearheaded by the island governments—led by Bonaire—had initially passed despite warnings from Finance Minister Heinen. He cautioned that the changes would harm the most vulnerable while primarily benefiting high earners, particularly those over $75,000.

In response to critical backlash from figures such as Glenn Thode, chairman of the Social Minimum Committee, and National Ombudsman Reinier van Zutphen, the authors of the amendment (ChristenUnie, GroenLinks-PvdA, and D66) quickly drafted the motion to avert further harm. However, VVD MP Aukje de Vries criticized their actions, tweeting:
“First, they push through a poorly thought-out amendment to the BES Tax Plan. Then, when the consequences become clear, they rush to fix it with a motion to prevent tax increases on minimum incomes.” She also noted that her party and the PVV had voted against the original amendment.

The newly adopted motion benefits both low and higher-income residents, as it postpones tax increases for at least a year. However, despite this relief, the most vulnerable residents still face a potential purchasing power loss of nearly 10% due to government policy.

Further relief may be on the way, as amendments proposing an additional €16 million for purchasing power support are scheduled for a vote on Thursday.

DossierKoninkrijksRelaties

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