Plans to increase value-added tax on theatres, museums, books and sports clubs from 2026 are set to be scrapped because the upper house of parliament had threatened to torpedo them.

Opposition parties had told finance minister Eelco Heinen to come up with an alternative plan to raising value-added tax on culture, sports, books and newspapers from 9% to 21%, saying otherwise they may vote against it in the senate.

While the right-wing coalition has majority support in the lower house of parliament, it is well short of a majority in the upper house. And opposition to the tax hike could threaten the government’s entire tax planning for 2025.

Heinen told MPs during Thursday’s debate that he is prepared to look for an alternative to bring in €1.1 billion for the treasury if parliament is prepared to work with him.

“The cabinet is open to alternatives, if financially covered, and that is what I have always said,” he told parliament.

The plan to raise BTW would have brought in an estimated €2.3 billion and was aimed at closing budget gaps. The right-wing cabinet had described the move as unfortunate but essential.

On Tuesday a motion calling for an alternative by the Christian Democrats was supported by both the other Christian parties, D66 and the GroenLinks-PvdA coalition, as well as the far-right one-man party JA21.

The tax hike will remain in the government’s tax plan pending an alternative, with a vote scheduled to coincide with the finance minister’s spring statement. Should no suitable alternative be found, then the BTW increase will go ahead, Heinen said.

The BTW hike for hotels and other lodgings is not affected by the U-turn.