Floriculture sector: VAT increase on flowers and plants must be scrapped

Today, Royal FloraHolland, together with other representatives of the floriculture sector, made a strong appeal to the government to abandon the proposed increase in VAT on flowers, plants, flower bulbs and tree nursery products from 9 to 21 per cent.

During a meeting with State Secretary for Finance Eelco Eerenberg and State Secretary for Agriculture, Fisheries, Food Security and Nature Silvio Erkens, the sector made it clear that the measure not only affects entrepreneurs and consumers, but will also harm the Dutch economy and employment. The proposed tax increase also contradicts the government’s ambitions to accelerate greening efforts, reduce heat stress and promote biodiversity.

The meeting was prompted, amongst other things, by the findings of a recent study by Decisio. This shows that the measure will generate significantly less tax revenue than the government expects, whilst the economic and social damage is disproportionate.

The VAT increase is expected to lead to a loss of turnover of more than 800 million euros, put thousands of jobs at risk and weaken the competitive position of a sector that accounts for over 65,000 jobs and an export value of more than 9 billion euros.

By making flowers, plants and trees significantly more expensive, consumers will be discouraged from investing in a green and colourful living environment. Flowers and plants convey emotion and give meaning to moments. This must remain accessible and affordable for everyone.

Pieter Bootsma, CEO of Royal FloraHolland: “Today we have provided the government with further insight into why this measure is fundamentally flawed. The VAT increase will generate less revenue than is suggested, but will cause disproportionate damage. Entrepreneurs, particularly florists, will lose turnover, jobs will come under pressure and investing in green environments will become more expensive for consumers. That is a poor outcome for the Netherlands. The facts are clear. We therefore call on the government not to amend or soften this measure, but to scrap it entirely.”

The floriculture sector expects the government to take the results of the study and the widely shared concerns seriously. Growers, traders, florists and other supply chain partners remain committed to having this harmful measure scrapped.

On behalf of: the Association of Florists and Retailers (VBW), Royal Flora Holland, VGB, Tuinbranche Nederland, LTO, Royal Anthos, Koninklijke VHG, Glastuinbouw Nederland, Koninklijke CVAH, Plantion, KAVB and Florint