VAT hike on books, sports likely won’t pass through Senate; Opposition blocking plans

Heavy criticism from opposition parties will likely lead to the Cabinet’s proposed tax hikes not making it through the Senate. The opposition, who are needed for a majority, have been critical of the plans from the moment they were announced, but they are now also speaking out publicly. All the parties that are needed for a majority will likely vote against the tax plan.

D66 had already said that they will not support a VAT increase from 9% to 21% in the sports, hotels and culture sector. GroenLinks-PvdA thinks that not enough is being done to help workers financially and does not like the plans either way.

The Christian parties CDA, ChristenUnie, and SGP came up with a motion to temporarily postpone the removal of the reduced VAT rate on concerts, museums, and gyms. In the meantime, the lower house of Dutch Parliament, the Tweede Kamer, and the Cabinet will have to find a new way to close the gap of almost two billion euros in the budget.

This is not the only thing that the opposition parties are hoping to change. They also want the reduction of the gift deduction to be completely scrapped.

The CDA, ChristenUnie, and SGP also want financial improvement for families with one working parent. The parties have been complaining for some time about the gap between so-called single-income households and dual-income households.

“It is all three, and then have all three of us. And if it is one of those propositions, then you don’t have all three of us,” said SGP leader Chris Stoffer.

The government coalition parties are eight seats short of a majority in the Senate. NSC member Tjebbe van Oostenbruggen, who was nominated as State Secretary on Tuesday, will probably have to arrange support from several opposition parties to get the tax plan through the Senate.

Coalition parties NSC and BBB are opening the door to the proposal by CDA, ChristenUnie, and SGP to postpone the VAT increase for the time being. CDA member Inge van Dijk thinks that it is still possible to find the necessary 2.3 billion euros by abolishing a number of complicated exceptions in VAT.

The Tweede Kamer vote on the tax plan and the motion is scheduled for Thursday.