Bomb under free public transport for the elderly in Rotterdam area

In Rotterdam, Capelle aan den IJssel, Schiedam Barendrecht and create some 70,000 elderly free use of public transport. This is possible through a collective contract that ended the municipalities with public transportation. The Tax Administration finds that the participating municipalities in future have to pay VAT on the services provided. This is the municipalities millions of euros extra cost.

The Tax Administration has focused its sights primarily on Capelle aan den IJssel. The reason is unclear. Previously municipalities were exempt from paying this tax. Today she VAT.

There is a compensation scheme, but it is not designed according to the tax authorities for a service such as free public transport. Recently approved the tax authorities for that reason make a deduction submitted by Capelle. Thus the neighboring municipality of Rotterdam is the first to be confronted with the new "hard line" of the tax authorities.

The consequences are enormous, says Capelse VVD leader Nico van Veen. ,, The commission reports that this could lead to an additional 750,000 euros. The municipality now pays 550,000 euros to the RET for the free transport of 8,500 older Capelle Egyptians.If we have to pay taxes is a few tons annually on top. That would mean the end of the scheme. That can not pay Capelle aan den IJssel. ''

reassessment
Rotterdam, where tens of thousands of elderly people have a free public transport pass, must fear a retrospective that runs into millions of euros. The municipality has to, however, has not yet faced the tougher attitude of the tax authorities, reports a spokesman for the municipality of Rotterdam. ,, We're not worried yet. ''

Board member Elly Smits of Rotterdam Elderly Association will develop very worrisome. ,, Liveable Rotterdam and the Labour Party have made ​​them hard jobs for this scheme. I fear that this will stop if the costs incurred by the tax soar. That would be a disaster. Many older people have only AOW, sometimes with a small pension. To them threatens isolation. They really do not want to travel at their own expense the money. ''

It has not yet said VVD Van Veen. ,, Capelle signs with the court objected to. The verdict will be watched with interest across the country. "" The Tax passes later this week introduced the VAT system.

By Editorial: AD / Carel van der Velden Photo: RET / Rick Choice