As expected, the House majority wants to reduce interest on student debt for students covered by the loan system. Various proposals to regulate this received sufficient support in the House of Representatives. For some students, the interest rate will rise from 0.46% to 2.56% effective January 1. This can cost thousands of euros.
As expected, the House of Representatives approved a plan to simplify the tax system for expatriates. The money raised should benefit students who have fallen under the loan system, the so-called unlucky generation. Yesterday, the majority had already signed the proposal submitted by MP Umtzigt, GroenLinks-PvdA, Volt and the Christian Union. From 2029, this reduction should generate around €200 million per year.
Now highly educated foreign employees enjoy a tax advantage compared to Dutch employees. So-called expatriates now no longer have to pay a tax of a maximum of 30% of their wages for five years. The proposal shortens that period to a maximum of twenty months. Thereafter, a 20% plan applies for 20 months, and a 10% plan for 20 months after that.
It is not clear how much the interest rate for students should be reduced, and when this should happen.
The House of Representatives also adopted a proposal to freeze interest on student loans for the unlucky generation for next year at this year’s level. The funds should come from the above-mentioned Umtzigt amendment. But Umtsigt wondered in parliament whether his plans would generate enough money, and thus voted against the proposal himself. The amendment is mandatory for the government, and the government can ignore this proposal.
D66 and SP’s proposal to raise student loan interest for the unlucky generation to 0 percent did not receive enough support. This plan should be financed, among other things, by increasing the value-added tax on decorative flowers.
The House of Representatives is in recess as of today in preparation for the House of Representatives elections next month. The last meeting lasted until 3:45 a.m., during which dozens of proposals and amendments were voted on on numerous topics, from international railway lines, the deployment of a police helicopter in the border area to the Chemours factory in Dordrecht.
Last week, students demonstrated in front of the House of Representatives against increasing interest rates:
Students protest the interest rate increase on their student debt and want the interest rate to go to zero.
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