State Secretary Sees No Major Problems for Floriculture Sector from Higher VAT

• Dutch State Secretary Eerenberg does not expect major problems for the ornamental horticulture sector if VAT rises to 21% in 2028.
• The reduced VAT rate is being scrapped because it no longer appears to make flowers and plants more affordable for lower-income households as originally intended.
• The government estimates the measure will raise €328 million a year, but Wageningen University projected only €159 million net after accounting for behavior changes.
• Eerenberg says behavior effects were not included because substitute spending would likely still be VAT-taxed, and broader effects like job losses were also not factored in.
• He argues Spain’s experience is not directly comparable because the Netherlands’ sector is mostly export-focused, and exports remain subject to a zero VAT rate.

Source: fiscaalvanmorgen.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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