The right-wing cabinet has no plans to change its thoughts on increasing the value-added tax rate on hotels, books, sports events, culture and gyms to 21% despite massive and vocal opposition, the AD reported on Thursday afternoon.

The new team needs the €2.2 billion the move will raise to finance other plans, the paper said, quoting sources in The Hague.

Ministers and the leaders of the four parliamentary parties which make up the new administration are currently finalising the 2025 budget and the final green light is set to be given at Friday’s cabinet meeting.

Economic affairs minister Dirk Beljaarts told reporters on Thursday morning that some measures the cabinet is taking are “not nice”. The full range will be unveiled on September 17, he said, adding that the btw rise “is part of the coalition agreement.

A large part of the money to be raised from higher value-added tax will be shifted back to consumers via income tax and other cuts. The government’s macro-economic planning bureau estimates that the average person will have 2.5% more to spend this year and 1.1% more in 2025.

Campsites, cinemas and amusement parks will retain the lower tax rate of 9%.
Sports groups, the hospitality industry, the media, book sector museums and the culture sector have all appealed to the government to rethink its plans.

Opposition parties in the lower house of parliament have already said they will fight to have the increase reversed. And given the coalition does not have a majority in the upper house, it will face problems winning approval there.

The btw increase confirmation is the second major leak about the new government’s plans. Earlier it emerged that the new administration is considering introducing a new, lower tax band to cut income tax for low income households in particular.