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Government Responds to Questions on VAT Increase Impact Analysis for Accommodation

  • State Secretary Heijnen responds to parliamentary questions about the impact analysis of VAT increase on accommodation
  • Political parties JA21, 50PLUS and CDA questioned why negative effects like decreased demand and revenue loss in border regions and budget segments are not reasons to reconsider the measure
  • The cabinet acknowledges the measure is impactful but will not reverse it because the reduced VAT rate for accommodation is not effective and lacks clear objectives
  • The original 1969 justification based on weak competitive position due to climate is no longer valid according to the cabinet
  • Revenue from the VAT increase is necessary for financing the purchasing power package and reversing it would require finding alternative budget coverage

Source: open.overheid.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.



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