Over the past year, most municipalities have imposed more stringent requirements for exemption from municipal taxes. This is the result of a NOS survey of approximately 180 municipalities. Residents with little savings are particularly affected.
Municipalities collect taxes, for example, for the collection and treatment of waste, the use of the sewer system or the ownership of a home. Low-income, low-wealth residents can waive these taxes.
For example, if a single person has less than 1775 Euros in their account (and no other assets) they do not have to pay taxes. The limit is slightly higher for single parents or couples.
Higher limit, buffer required
In practice, this limit is too low, says André Moerman of the National Organization of Social Counselors. “It’s important to create a buffer to fix disruptions like a washing machine breakdown or a high electricity bill. People are already deprived of property if, for example, they have just received their income and they have accumulated very little.”
To solve this problem, municipalities have been allowed to increase the capital limit since last year. For example, a single person with assets between 1775 and 3275 euros does not have to pay council tax.
“For a financially healthy home, you really need a buffer like this,” Moerman says. “It prevents borrowing. As a municipality, this should be rewarded, not punished.”
Not this year, next year
More than half of the municipalities participating in the NOS survey did not use the upper limit in December. It’s notable, according to Moerman, because the rules could be introduced as early as September, that is, before the 2022 tax assessment.
“They knew this was coming,” Moerman says. “This has been requested for years. If it finally succeeds, municipalities will have to introduce it. If they didn’t do it before 2022, at least before 2023.
Take a closer look at the effects
Although the majority of municipalities want to expect higher limits from this year, there are also municipalities that are more cautious. Berg en Dal explained that they wanted to “first examine the financial implications of the measure.”
Almere also wants to take a closer look at the effects first. In addition, the municipality states that “comparably few residents in Almere are denied on the basis of wealth alone”. However, according to Moerman, it is the most common reason for refusing remission in the Netherlands.
It provides more benefits to low-income residents of their place of residence, as municipalities do not introduce the policy at the same time. December also revealed that there are many disparities between municipalities when it comes to income support for poorer residents.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
