In the Netherlands, Royal FloraHolland and other representatives of the floriculture sector have called on the government to abandon a planned increase in value-added tax (VAT) on flowers, plants, flower bulbs and tree nursery products from 9 to 21 percent.

During a meeting with State Secretary for Finance Eelco Eerenberg and State Secretary for Agriculture, Fisheries, Food Security and Nature Silvio Erkens, sector representatives argued that the measure would harm not only businesses and consumers but also the Dutch economy and employment more broadly. They also pointed out that the tax increase runs counter to the government's own ambitions to green urban areas, reduce heat stress and promote biodiversity.

The meeting followed the publication of a study by research firm Decisio (link in Dutch), which found that the measure would generate significantly less tax revenue than the government has projected, while causing disproportionate economic and social damage. According to the study, the VAT increase is expected to result in a revenue loss of more than 800 million euros, put thousands of jobs at risk, and weaken the competitive position of a sector that accounts for more than 65,000 jobs and over 9 billion euros in export value.

By making flowers, plants and trees substantially more expensive, the measure would discourage consumers from investing in green and colourful surroundings. Industry representatives argue that flowers and plants carry emotional value and mark important moments in people's lives, and that they should remain accessible and affordable for everyone.

Pieter Bootsma, CEO of Royal FloraHolland, said: "We have given the government further insight into why this measure simply doesn't hold up. The VAT increase would raise less revenue than promised, while causing disproportionate damage. Businesses, florists in particular, would lose turnover, jobs would come under pressure, and greening would become more expensive for consumers. That is a bad outcome for the Netherlands. The facts are on the table. That is why we are calling on the government not to adjust or soften this measure, but to withdraw it entirely."

The floriculture sector said it expects the government to take the study's findings and the widely shared concerns seriously. Growers, traders, florists and other supply chain partners say they will continue working to have the measure withdrawn.

The statement was issued on behalf of: Vereniging Bloemist Winkeliers (VBW), Royal FloraHolland, VGB, Tuinbranche Nederland, LTO, Royal Anthos, Koninklijke VHG, Glastuinbouw Nederland, Koninklijke CVAH, Plantion, KAVB and Florint.
 

Source: www.floraldaily.com