Sectors unite against right-wing coalition's plan to hike VAT from 9 to 21 percent

The hotel, sports, book, media, and culture sectors have hastily concluded a “monster alliance” against the PVV, VVD, NSC, and BBB coalition’s plan to apply the normal VAT rate of 21 percent to them instead of the current low rate of 9 Percent. The KNVB, Horeca Nederland, cultural institutions, and the book industry, among others, will start a joint campaign against the plan next week, the Volkskrant reports.

The right-wing coalition’s “main lines agreement” states that the normal VAT rate of 21 percent will apply to “accommodation” and “cultural goods and services” from 2026. That includes overnight stays in hotels, books, newspaper subscriptions, and tickets to sporting events, festivals, and cultural institutions. Campsites, cinemas, and amusement parks will retain the low VAT rate of 9 percent. The coalition expects to raise almost 2.2 billion euros per year with this VAT hike, which they want to spend in other areas.

If the involved sectors pass the VAT hike on completely to consumers, that would mean an 11 percent price increase for things tickets to football matches, festivals, and concerts. Newspaper subscriptions and books will also become increasingly unaffordable, especially for low-income households. The sectors involved find that unacceptable and will launch a campaign on Monday to get the planned VAT hike off the table.

The affected sectors all fiercely criticized the plan immediately after the presentation of the main lines agreement. The KNVB called it “a slap in the face” of the Netherlands' most popular sport, saying the hike would turn football matches from one of the only places where all walks of life still mix to events only attended by the elite.

Hospitality association Horeca Nederland called it a “new blow” for the hotel sector, which is still struggling to recover from the coronavirus pandemic. Kunsten 92, the interest group for the cultural and creative sector, called it “a concealed financial attack with major consequences.” Concerts, festivals, and theater performances will become increasingly inaccessible, resulting in lower turnout and an impoverishment of the cultural offer in certain regions.

The book industry said it was flabbergasted that the new government wants to make books more expensive at a time when Dutch kids are struggling with their literacy. It launched a petition against the hike, which was signed over 200,000 tines in eight days.