Cabinet Adjusts Corona Support Pack Due To Fast Recovery Economy

Due to the rapid recovery of the economy, the Cabinet is slightly adjusting the corona support package for businesses. Entrepreneurs can now report up to 80 percent loss of revenue when applying for NOW wage support. That was 100 percent at first. This applies to the third quarter until 1 October. After that, the whole corona support package stops for now.

The sober NOW scheme can be requested a few weeks later than planned due to the change. The diversion of the other measures, such as the TVL fixed burden support, proved to be too complicated in administrative terms. These remain unchanged for the third quarter.

At the request of many companies and the House of Representatives, the application for tax deferral is extended from 1 July to 1 October. Companies that have requested a deferral over a certain tax period will have five years to pay this part of their tax. As of October 1, 2021, companies are supposed to be able to pay their taxes back to normal.

Too Early

Given the emergence of new coronavarians, trade unions and employers organization VNO-NCW still find the situation uncertain in the fall and therefore it is too early to say that no more support is needed by October. โ€œThis abrupt phase-out puts many entrepreneurs in trouble unnecessarily. And with that, working in many sectors under pressure,โ€ says Piet Fortuin, Chairman of Trade Union CNV.

Trade Union FNV has long been in favour of extending corona support until the end of this year. And then stricter conditions may be made, such as a ban on the payment of bonuses by the foreign parent company. This is now allowed and has been done by, who, because of the fuss, decided to repay full wage support. โ€œOf course, there should be no abuse of the emergency aid. But getting rid of support too early for companies that really need it gives employers uncertainty and uncertainty costs jobs,โ€ says President Tuur Elzinga.

Earlier, entrepreneurs reported that customization is needed in the support packages. โ€œThere are entrepreneurs who were obliged to close their doors, but fell outside the boat of the aid measures. There is still no solution for that,โ€ says employer organization VNO-NCW.

Economic Recovery

the end of March, the Central Planning Bureau said that the support package should be completed quickly when the corona measures are lifted. If the support package is maintained for too long, it could stand in the way of economic recovery, CPB said then.

Thanks to the support, many companies remain upright, but the economic disadvantage is that zombie companies are created, wrote Director Pieter Hasekamp. โ€œBusinesses with no future perspective surviving on support and loans. Employees are paid at home while other sectors are sometimes jumping to make people and start-up entrepreneurs no chance.โ€

Earlier this month, the Nederlandsche Bank advised that government support packages be phased out after the third quarter.