The Dutch MoF launched a public consultation on the abolishment of the 9% reduced VAT rate for floriculture. With this measure, the government seeks to raise funds to finance other government expenditures, and contribute to the simplification of the tax system. Interestingly, the consultation is launched following a 2023 evaluation of this measure, which yielded negative results. The reduced rate was introduced in 1975 to make ornamental horticultural products such as flowers, plants, and flower bulbs more affordable for people with lower incomes and to create additional jobs in the floriculture sector. The 2023 evaluation shows that this measure is not effective, as the benefit does not specifically reach lower-income groups, and the costs associated with the jobs created are high.
Read more HERE