BBB threatens to block wealth tax overhaul unless cabinet withdraws plan

The coalition’s attempt to replace the current notional-growth asset tax with a system taxing yearly asset growth has hit a roadblock in the Senate. While the lower house, backed by D66, VVD and CDA, passed the “box 3” reform, senators from those parties now favour a capital-gains tax, aligning with right-wing opposition parties BBB and JA21. BBB has threatened to compel a Senate vote unless finance minister Eelco Heinen withdraws the proposal entirely, a stance voiced by senator Bart Kroon in the finance committee.

Heinen had aimed to incorporate amendments into the 2028 budget, but the plan was previously abandoned after criticism that it could force investors to sell assets to cover tax on unrealised gains. A new bill would not be enacted before 2029, potentially costing the treasury about €3 billion annually in lost revenue. The reform effort follows a 2021 Supreme Court ruling that the existing system violated European human-rights law.