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Opposition parties warn finance minister on BTW tax hike

November 13, 2024
The senate

Opposition parties have told finance minister Eelco Heinen to come up with an alternative plan to raising value-added tax on culture, sports, books and newspapers or 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.

The coalition plans to put up BTW on cultural activities, hotels and sports events from 9% to 21%, a move it says is essential to pay for other plans.

The plan to raise BTW will bring in an estimated €2.3 billion and is aimed at closing budget gaps. The right-wing cabinet has 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.

“This is crucial for us to be able to support the tax plan,” CDA parliamentarian Inge van Dijk said during the debate.

The lower house vote on both the tax plan and the motion is on Thursday.

If the CDA stands firm and the opposition parties vote against the tax plan in the senate, other measures, such as the reduction in petrol taxes and reversing the tax on share buy-backs, will also be lost.

Despite alternatives offered by the opposition the discussion is in “deadlock”, D66 MP Hans Vijlbrief told the AD last week.

The former finance junior minister said he had been exploring “over 10” alternatives, ranging from a rise in tax on tobacco, higher fines by consumer and market watchdog ACM to a tax for bulk water consumption as a replacement for the culture tax hike.

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