Tax Justice Netherlands, of which FMS is part, is today launching a campaign against the abolition of the dividend tax. The cabinet plans to come to the House of Representatives in September with the bill abolishing dividend tax. In the coming months, we want to make it clear that the abolition of this tax is ill-considered and should therefore be abandoned.
By abolishing the dividend tax, the Dutch government will lose 1.4 billion euros annually. Money that is badly needed for other important issues such as healthcare and education. The campaign kicks off with a joint petition.
Not more jobs by abolishing dividend tax
Abolishing the dividend tax does not contribute to more or better jobs in the Netherlands. It does not lead to a better investment climate and consequently more jobs, as is claimed by proponents of the abolition. This is according to memos from the Ministry of Finance and research by SOMO. Most of the money flows (77%) to foreign tax authorities. The remaining 23% ends up in the UK and in tax havens, thus guaranteeing no investment in Dutch jobs.
Indeed, abolishing dividend tax strengthens tax competition between countries. The Netherlands already has a bad image internationally as a tax haven. The only other major European country that does not levy dividend tax is the UK. According to the European Parliament, even now companies are already extracting between €160 billion and €190 billion annually from society through tax avoidance. This has a big impact especially on developing countries that could well use this money to invest in healthcare, education, etc.
About Tax Justice NL
Tax Justice Netherlands is a network of Dutch civil society organisations and trade unions active in the field of taxation. It is committed to a globally fair tax system and advocates for more transparency from companies and governments. Tax Justice Netherlands consists of the following organisations: ActionAid, BothEnds, FNV, Milieudefensie, Oxfam Novib, Stichting Onderzoek Multinationale Ondernemingen (SOMO), Foundation Max van der Stoel (FMS) and Transnational Institute (TNI).