A controversial corporate tax break continues. The majority of the House of Representatives today approved the so-called Job-related Investment Discount (BIK).
With the BIK, the cabinet wants to entice companies to continue to invest despite the corona crisis. Investments are necessary to boost the economy, is the cabinet’s reasoning. Under the plan, entrepreneurs can deduct part of their investments from wage tax. A total of 4 billion euros has been earmarked for this over the next two years.
A large part of the opposition sees nothing at all in the BIK and regards it as an attempt by the cabinet to fill large companies. According to the critics, now only investments are highlighted that would otherwise be made in a few years anyway, and the plan does not increase employment. “The BIK is ineffective and we are against it,” said PvdA MP Nijboer.
The BIK is part of the Tax Plan and many critical opposition parties are in favor of it, because all kinds of things are arranged for lower incomes, such as a rent reduction and lowering the first tax bill. “So we vote for the Tax Plan, but we are against the BIK”, said Nijboer, also on behalf of GroenLinks.
The controversial BIK has recently been adjusted. About 65 percent of the available amount will end up with small and medium-sized businesses. In the original proposal this was still 59 percent. The fact that more small companies are benefiting from the scheme convinced SGP, Forum for Democracy and Van Haga.
The proposal must also go to the Senate, but there is probably a majority in favor of that too.
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