VVD drops support for sales tax increase

The VVD is pulling its support to the Cabinet's proposed increase on sale tax on many goods and services now that the negotiations on the tax reform has collapsed. The negotiations on the tax reform collapsed on Monday night after the D66 refused to take part any further. According to Alexander Pechtold, the cabinet shows a lack of ambition, especially towards jobs creation. This has given the coalition parties freedom to reassess components of the cabinet's plan. VVD leader Halbe Zijlstra made clear to NU that his party will not support the VAT increase. "The cabinet's plan emerged from a survey of parties who participated in the negotiations. That package also included the VAT increase", he said to NU. "We were not a big supporter of the VAT increase, but we were willing to talk about it. Now that support is lacking this plan will not go through."