Sturdy increase in 2001 tax revenues

14/10/2002 10:00

The Dutch government received 99 billion euro in tax revenues in 2001, just over eight percent more than in 2000.

Government tax revenues, 2001

More VAT revenues and tax on dividends

VAT revenues rose by 3.5 billion euro in 2001 (+13 percent), mainly boosted by the increase in the rate of VAT - from 17.5 to 19 percent – introduced on 1 January 2001.

The revenue from tax on dividends rose by 1.7 billion euro (+ 67 percent). This was connected with the increase in dividends paid a consequence of the spectacular increase in profits of stock exchange listed companies on the in 2000.

Changes in government tax revenues

Lower growth for wage and income tax

Wage and income tax put 1.1 billion euro more in government coffers in 2001 than in 2000 (+ 5 percent). This increase was less than the 1.7 billion euro in the preceding year, which was the result of the reduction in the rates of wage and income tax, one of the tax revision measures introduced on 1 January 2001.

Corporation tax, too, grew less strongly: by 0.8 billion euro, down from a 1.1 billion euro increase in 2000.

Changes in government spending

More spending on social provisions

Among other things, the government used 2.2 billion euro of the higher tax revenues for extra spending on social provisions. More was spent on the revision of employment policy and employee insurance. More money also went into income support, child welfare, childcare and the reception of asylum seekers.

In addition the government spent 1.9 billion euro extra on health care and 1.8 billion extra on education in 2001.

Fred Arkesteijn