- The main focus of the new government agreement is on increasing the VAT rate on cultural expenses from 9% to 21%
- The proposal has generated a lot of attention and controversy, especially regarding the impact on newspapers and museums
- There is a suggestion to switch to a uniform VAT rate system, which is supported in the opinion piece by Prof. Dr. Peter Kavelaars
- The VAT, along with income tax, is the main source of revenue for the government
- Adjusting VAT rates can have significant budgetary effects, with a 1% increase in the lower rate generating €1.33 billion and in the higher rate generating €3.29 billion
- Increasing the lower rate to 21% could generate nearly €16 billion in revenue, while following Denmark’s 25% rate could bring in €34 billion and Hungary’s 29% rate could bring in over €26 billion
Source: ndfr.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
