Two of the three coalitions parties, are looking into the possibility of phasing out tax relief for
mortgages under which only the interest is paid off for the first 30 years, reports Wednesday’s Volkskrant.
Scrapping this form of mortgage (which allows home owners to the maximum tax relief on their loans) could be a ‘realistic first step’ in making the cuts that the cabinet needs to get the country’s finances back on track, according to Labour and the orthodox Christian party ChristenUnie.
Getting rid of mortgage tax relief is a politically sensitive issue but is one of the 20 areas being looked at for possible cuts. Morgage relief costs the treasury around €12bn a year, says the Volkskrant.
The Christian Democrats made an election pledge that the tax break for home-owners would not be cut, although they are now less vocal in their opposition.
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