Reverse VAT increase on lodging. Broad coalition hands appeal to House of Representatives.

Motion VAT on lodging: vote gives confidence

Last week, the GroenLinks-PvdA and the SP separately tabled a motion to reverse the VAT increase on lodging from 9% to 21%. On Tuesday 9 September, it was announced that the GL/PvdA motion had been held up. That means it has not been voted on (yet). The SP motion was voted on, however, and rejected.

Still, there are clear bright spots: BBB MP Henk Vermeer gave an explanation of vote prior to the vote. In it, he indicated that the BBB will come up with a proposal during the discussion of the Tax Plan, because research shows that the expected tax revenue is far from being achieved and the increase actually has negative effects, especially in border regions. The party voted against the SP motion, not because of its content, but because it did not include alternative coverage. PVV, DENK, JA21 and Forum for Democracy supported the SP motion. If GroenLinks-PvdA and BBB later vote along with a covered proposal that reverses the VAT increase, this gives us confidence that the measure will still be off the table when the Tax Plan is debated.

We continue to lobby

This is precisely why we keep up the pressure on The Hague. With Budget Day, the General Financial Reviews, the discussion of the Tax Plan and the elections ahead, there are still plenty of political opportunities to put this issue back on the map. We remain fully committed to getting this VAT increase off the table.

Broad concerns shared by more than 35 sectors

We are not conducting this lobby alone. On Tuesday, we handed a joint letter to the Lower House on behalf of KHN, co-signed by over 35 other branches, municipalities and provinces. After all, the VAT increase affects much more than just the hospitality industry. Day attractions, festivals, museums, cinemas, cultural institutions, shops and transport companies also feel the impact.

Last week we additionally offered the magazine Sleepless nights to, in which hoteliers share their personal stories about the impact of the measure.

Research confirms our concerns

Recent independent studies by ABN AMRO, CELTH/Decisio and Significant (commissioned by the Ministry of Finance, among others) show the same picture: this measure causes loss of demand, loss of turnover, loss of jobs and less room for investment in sustainability and quality. And that while the measure costs more under the line than it delivers.