Dutch Drop Dividend Tax Plan After Unilever's U.K. Decision
- Prime Minister Mark Rutte eyes bigger cuts in corporate taxes
- Opposition parties have sought additional spending on locals
Mark Rutte
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Dutch Prime Minister Mark Rutte abandoned a proposal to end a dividend-withholding tax, in an about-face triggered by Unilever’s decision to forgo a plan to consolidate its headquarters in the Netherlands.
Rutte ditched the dividend tax proposal a little over a week after saying his government would reconsider the measure. Abolishing the dividend tax would have cost Dutch state coffers 1.9 billion euros ($2.2 billion). Nixing it means Rutte faces an embarrassment of riches, which he aims to spend on tax measures to keep the Netherlands attractive to businesses. Opposition parties have demanded more spending to benefit locals.