Plans to raise VAT by 0.4% back on table after NSC backtracks

NSC has backtracked on its plans to hold VAT at 21% after joint party leader Nicolien van Vroonhoven told parliament that she regretted her vote to block a 0.4% increase.
“Perhaps the VAT option was swept off the table too quickly,” to 21.4%, she said, adding she wanted to look at “possibilities to open the door a crack again”.
NSC’s position came as a surprise to the opposition, since the governing party was one of the initiators of the motion to raise the rate of btw, or value-added tax, to make up for an impending budget shortfall of €1.2 billion.
In November, after broad social resistance, MPs decided against raising VAT on sports, books, and museum visits from 9% to 21%.
But MPs from across the political spectrum, including the coalition government, said three weeks ago that they would not accept an increase in VAT.
“Mortal shame”
Now NSC has reversed its position, saying it’s a “mortal shame” the Lower House rejected a VAT increase. As raising the VAT on culture, media and sports is no longer an option, NSC says the 0.4 percent VAT raise should still be considered.
But no other party is backing NSC’s position. Coalition partner BBB says another route needs to be found to make up the €1.2 billion shortfall, and VVD and PVV seem to agree.
Deputy minister of finance Tjebbe van Oostenbruggen, who so far has only come up with solutions to the budget shortfall from within the VAT domain, said he understands after Thursday’s debate that MPs want to look for other solutions.
“I heard you correctly,” the NSC minister said, saying he’ll work on it.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.
Make a donation