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Mayors oppose planned VAT increase on ornamental products

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Aalsmeer mayor Gido Oude Kotte and eight other mayors have urged State Secretary for Finance Eelco Eerenberg and the House of Representatives to scrap a planned increase in VAT on ornamental products. The rate is due to rise from 9% to 21% in 2028. The mayors said the measure would affect growers, florists, traders, employment and logistics, and would make flowers and plants more expensive for consumers. Aalsmeer alderman Sven Spaargaren is also involved in the campaign.

The mayors said the ornamental sector’s turnover could fall by between €546 million and €672 million and that 2,000 to 3,000 jobs could be lost. The specific effects on Aalsmeer have not been calculated separately. Member of Parliament Mona Keijzer has since tabled an amendment, and the House is due to vote on the new tax plan on 12 November.

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Tax, Benefits & Cost of Living

Dispute over funding for Box 3 tax reform

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The government plans to replace the current Box 3 system with a tax on actual returns from savings, investments and second homes from 2028. After plans that would have increased the burden on smaller savers and investors were dropped, it still has to find funding for the resulting budget shortfall. A majority in the House of Representatives asked the government to examine limiting the tax advantage of paper gifts, which can reduce inheritance tax. D66 and CDA supported that approach, while coalition partner VVD opposed it. The VVD proposed a further reduction in the Box 2 tax rate to encourage entrepreneurs to withdraw more money from their companies, but reports said this would not provide sufficient long-term funding. The coalition had not presented concrete alternatives to opposition parties by the parliamentary debate on 12 October. Prime Minister Rob Jetten said the government would continue talks with opposition parties on funding. Introducing the new system in 2028 remains uncertain: the Council of State's advice was not expected before 19 October, and the Tax Administration has said most of its available IT capacity will be needed for the reform and other tax changes in the next two years.