Minister considers increasing low value-added tax rate to 8%

Junior finance minister Frans Weekers is looking into the likely effects of an increase in the low value-added tax rate from 6% to 8%, news agency ANP reports on Thursday.


The lower rate of valued-added tax (btw) is applied to food, hairdressers, plasterers, newspapers and the flower industry. Weekers has promised to find out what the precise effect of an increase would be on spending power and grocery bills.
The minister first suggested the increase last year, to a storm of protest from MPs. The food retail trade organisation said at the time it would add €640m to the nation’s food bill.
Weekers is also considering the option of introducing a single btw tariff and a gradual increase in both the low and higher rates of btw, ANP says.

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