Understanding the History of Tax in the Netherlands
The history of tax begins in Roman times. People living in the territory of the Roman Empire had to pay taxes. The first tax rules in the Netherlands appear in 1805. The basic principle of taxation was born: income. Income tax was formalized in 1904.
VAT, income tax, payroll tax, corporation tax, environmental tax – these are all part of the taxes we pay today. We pay taxes to the government and to municipalities. With the revenue, the Ministry of Infrastructure of the Netherlands, for example, can take care of the dikes; or provinces of public transport.
Economists are still discussing questions such as: who should pay taxes? What should be the tax limit? How should tax income be spent? A state without taxes cannot take care of its citizens.
