The Christian Democrats do not want to reduce the tax break which people can claim on their mortgages but is prepared to put up another tax only paid by home owners, CDA leader Jan Peter Balkenende said in an interview with BNR radio, one day ahead of the general election.
The woningforfait [housing tax] can be used to ask the better off to show solidarity, the outgoing prime minister said.
The Financieele Dagblad says changes to the home owners tax could be a way out of the impasse which threatens to hold up the formation of a new cabinet because parties are sharply divided on mortgage tax relief.
The home owners tax is based on the official evaluation of a property by the local authority and is supposed to ‘counteract’ the advantage of home ownership over paying rent.
