The Dutch government will propose a capital gains levy next year, aligning the Netherlands with most European countries on wealth taxation. Finance Minister Eelco Heinen announced the move Tuesday in The Hague during the nation's budget day. The new system would tax investment gains only upon sale, replacing the current regime that can impose levies on theoretical or unrealized returns.

Heinen said the measure would "contribute to the goal of increasing future earning power, improving the investment climate, and stimulating economic growth." An earlier attempt to tax paper profits sparked investor backlash and remains stalled in the Senate. Years of fiscal uncertainty have drawn criticism from businesses and workers. The proposal aims to break a deadlock in a country where fragmented parliaments and rising spending demands often turn routine fiscal measures into protracted negotiations.

Switching systems carries administrative costs and delays revenue until assets are sold. Tax Secretary Eelco Eerenberg declined to specify an implementation timeline. Prime Minister Rob Jetten's coalition faces months of talks to secure a majority after narrowly averting a political crisis.

Tuesday's budget follows weeks of union-led strikes against €6.5 billion ($7.5 billion) in welfare cuts that disrupted public transport and affected operations at Heineken NV and the Port of Rotterdam. Many spending reductions, including halving unemployment benefit duration, were postponed.