The Dutch government is contemplating raising the highest VAT rate from 21% to 21.4% to bridge a budget gap, according to AD. Sources in The Hague confirm that this measure could generate approximately 1.3 billion euros by increasing costs on items like clothing, streaming services, and new kitchens or cars.
The government seeks to raise an additional 1.2 billion euros in taxes after canceling VAT increases on sports, culture, and books. A proposal with various options will be presented to the House of Representatives next week, with the VAT hike as the preferred option.
Alternatives include a single uniform rate between 17 and 18%, which could make goods like fruits and vegetables more expensive, or moving certain items from the 9% rate to the 21% rate. State Secretary Van Oostenbruggen has assessed options in the House, finding the 0.4 percentage point VAT increase most feasible.
D66 MP Vijlbrief opposes the plan, criticizing the financial burden on the public. JA21 and SP leaders, Eerdmans and Dijk, respectively, also express disapproval, citing high inflation and living costs.
PVV leader Wilders calls for tax relief instead of budget cuts.
Source: NOS