As expected, the majority of the House of Representatives wants to reduce interest rates on student debt under the student loan system. Various proposals to regulate this have received sufficient support in the House of Representatives. The interest rate for some students will increase from 0.46 percent to 2.56 percent on January 1. This could save thousands of euros.
As expected, the House of Representatives approved a plan to simplify the tax regime for foreigners. The money collected was intended to benefit students who entered the credit system, the so-called unlucky generation. Yesterday the majority MP accepted the proposal from Omtzigt, GroenLinks/PvdA, Volt and the Christian Union. This reduction is expected to bring about 200 million euros per year from 2029.
Well-educated foreign workers now have a tax advantage over Dutch workers. Expats no longer have to pay taxes on up to 30 percent of their salaries for five years. With the proposal, this period is shortened to a maximum of twenty months. The 20 percent rule is applied for the next 20 months, and the 10 percent rule is applied for the next 20 months.
It is unclear how much and when the interest rate for students should be reduced.
Freeze interest rates
The House of Representatives also passed a resolution to freeze student loan interest rates for next year’s unfortunate generation at this year’s levels. The money is said to come from the aforementioned Omtzigt amendment. However, Omtzigt wondered in parliament whether his plans would bring in enough money, and so he voted against the proposal. The change is mandatory for the government, the demand can be ignored by the government.
D66 and SP’s proposal to reduce student loan interest rates to 0 percent for the unlucky generation did not receive enough support. This plan should be financed, among other things, by increasing VAT on ornamental flowers.
The House of Representatives is on recess starting today, ahead of next month’s Parliamentary elections. The last session lasted until 03.45. Dozens of motions and amendments were voted on many issues, from international railway lines to the use of police helicopters in the border region to the Chemours factory in Dordrecht.
Last week, students demonstrated against the interest rate increase in the House of Representatives:
Source: NOS
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
