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The Dutch Tax Plan for 2027 narrowly passed in the House of Representatives on Thursday evening after a coalition deal with left-wing opposition parties secured 76 votes in favor. The slim majority saved the government’s fiscal framework, though the move has deepened internal friction within the ruling coalition.
The legislative breakthrough followed an intense period of uncertainty for the cabinet of Rob Jetten. After the government failed to secure sufficient support for the tax measures, it returned the initiative to the House, prompting coalition partners D66 and CDA to negotiate independently with opposition factions.
How the Tax Plan secured a majority
The path to approval became viable on Wednesday when D66 and CDA reached a deal with the parties Pro and Volt. The agreement included a proposal to increase taxes on assets by approximately 1 billion euros, which would allow for a reduction in labor taxes.
On Thursday, the coalition expanded its support base to overcome opposition from the VVD. The Partij voor de Dieren agreed to support the package after the coalition backed a proposal to further increase taxes on private jets.
The party Denk joined the majority; party leader Stephan van Baarle stated they backed the plan to ensure that costs for flying and refueling did not rise for citizens, aiming to keep daily life affordable.
Did You Know? The approved tax plan for 2027 is a critical piece of legislation that regulates all measures the government uses to generate revenue, making its passage essential for the state budget.
Why the VVD opposes the deal
The VVD, a key coalition partner, reacted with hostility to the negotiations. VVD leader Dilan Yesilgöz claimed her party had been “overvallen” (ambushed) by the deal, which she characterized as “slecht voor Nederland” (bad for the Netherlands) and a violation of existing coalitieakkoord (coalition agreement) terms.
VVD parliamentary leader Ruben Brekelmans described the decision by D66 and CDA to seek support from the left as “ontluisterend” (dismaying) after the final vote. Following the session, Yesilgöz indicated that a “fundamentele reset” (fundamental reset) of the coalition would be necessary if the plan passed via a left-wing majority.
What happens to the cabinet
Prime Minister Jetten is scheduled to meet with deputy prime ministers Yesilgöz and Bart van den Brink of the CDA on Friday to discuss the future of the coalition.
Frequently Asked Questions
What is the next step for the Tax Plan?
The legislation must still be approved by the Senate. The parties that voted in favor of the plan in the House of Representatives currently hold 34 seats in the Senate, which is just short of the 38 seats required for a majority.
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