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VAT increase on culture, media and sport off the table: coalition tackles challenge

Van der Plas (BBB), Yesilgöz (VVD) and Wilders (BBB)

NOS newstoday, 12:50Changed today, 6:03 p.m

The VAT increase on theatres, museums, books and sports is being canceled in 2026. The opposition parties in the House of Representatives have forced this on the cabinet. Without the support of these parties, the VAT plan will not get a majority in the Senate, so Finance Minister Heinen had to change tack.

The House is currently debating the Tax Plan, in which a VAT increase from 9 to 21 percent as of 2026 has been announced. GL-PvdA, D66, CDA, ChristenUnie, SGP, Volt and JA21 have submitted a joint motion asking the cabinet to find an alternative to the VAT increase.

So Heinen has to find another income. This amounts to a total of 1.2 billion euros, which does not include the VAT increase for accommodation and hotels. That part remains beyond Heinen’s commitment to the opposition. These alternatives will have to be found in the spring of next year.

The opposition parties are proud

The House of Representatives reacts with relief and happiness that the neutral tax measure is off the table. Several opposition parties make no secret of the fact that they are proud of their role in achieving this result. “The VAT increases are making the problems in society bigger, not less,” says CDA MP Inge van Dijk, “That’s why I’m glad they’re off the table and the cabinet goes along with my suggestion to find another option. “

D66, one of the pioneers, strongly opposed the VAT increase from the beginning. “We knew that hundreds of thousands of Dutch people would exercise less, go to concerts and read newspapers,” said party leader Jetten. “That is very bad for our health and enjoyment we have at the weekend.” He says the government was driving towards a blank wall. “Now they have to pull their leg at the last minute, which could be more smart.”

For the SGP there is an additional benefit to the ‘tax deal’ on VAT. This also includes the promise that single income earners will have to pay less tax from 2028. “Many single income families and families with low or medium incomes struggling. This amounts to hundreds of euros in tax money per year per household,” said the party leader Stoffer.

There is also complacency within the coalition party NSC. “It is good that the VAT increase will not go ahead,” the party said in a statement. “We expect this to generate support for the entire Tax Plan in the Senate.” As a result, the tax reduction in the first lot, more money for housing allowance and the budget related to a child can continue as usual, says NSC.

Can’t cancel

The Tax Plan is an important law that governs most of the state’s income, from which the expenditure must be paid in the end. The tax and company accounting authorities must have enough time to organize the new tax rules and rates for the next year.

The VAT increase for 2026 is included in next year’s Tax Plan to be able to record the government’s expected revenue now. This is also important for companies. In 2025, customers will already be buying products for the next year, such as theater tickets or gym memberships.

Therefore, it cannot be canceled and it must be voted on in the House of Representatives today. Therefore the law must be debated in the Senate before the end of the year.

2024-11-14 17:03:00
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