Dutch construction sector supports Ex’tax principles

More than 400 companies and individuals active in the construction sector have signed a manifesto calling for the Dutch government to shift the tax burden from labour to resource use.

The parties state they are committed to the Dutch government goals of cutting resource use and carbon emissions by half by 2030.

These goals, they say, are inhibited by the current tax system, which puts a relatively high tax burden on labour. In practice, making use of secondary materials rather than primary materials takes more time and effort, and is therefore more labour-intensive than traditional, linear construction processes.

At the same time, the external costs of primary materials (including carbon emissions) are not taken into account due a lack of pricing mechanisms. This is another disadvantage to circular businesses.To level the playing field, the tax burden needs to shift away from employment and onto resource use and pollution.

The signatories are willing to work together to redesign our tax system, to make it fit for the 21st century.

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