Costs for the average Dutch household are expected to increase by €300 in 2019 as the low value added tax rate increases to 9% from 6%, according to a report by ING.

Groceries, books and theatre tickets will cost more because of the rise. However income tax is set to go down and income will rise for most households, boosting purchasing power.

Shifting the focus of taxation away from personal income and toward consumption is part of the government’s tax reform plan, ING said

Increasing the lower BTW rate is expected to raise €3.1bn and will add 0.6% to inflation, according to figures supplied by the government think tank CPB.