Cabinet plans to raise VAT on flowers to 21 per cent
The increase is due to take effect from 2028, but parliamentary approval is still required.
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The cabinet plans to raise VAT on flowers, plants and flower bulbs from 9 to 21 per cent from 1 January 2028. The measure is part of the 2027 Tax Plan, which the Lower and Upper Houses still have to vote on.
According to the Dutch government, the reduced VAT rate of 9 per cent currently applies to ornamental horticultural products. The cabinet wants to remove that exception and apply the same rate as for many other goods. The proposed effective date is 1 January 2028.
The cabinet bases its choice partly on an evaluation from 2023. This is said to show that households with higher incomes benefit most from the reduced rate, while, according to the government, the measure makes only a limited contribution to retaining and creating jobs in the sector.
The government expects approximately 305 million euros in additional tax revenue each year. If companies pass on the full tax increase, flowers and plants could become up to 11 per cent more expensive, according to the cabinet's estimate. Whether this happens in full depends on price competition, margins and demand.
The ornamental horticulture sector is economically substantial and internationally oriented. According to an agricultural report by Wageningen University & Research and CBS, the export value of flowers, plants, trees and bulbs in 2025 was approximately 12.3 billion euros, 4.2 per cent more than a year earlier.
Those figures conceal differences within the sector. The estimated export value of cut flowers rose by 6.2 per cent in 2025, while that of houseplants fell by 0.4 per cent. Dutch growers and traders also compete with producers outside Europe and depend on consumers at home and abroad.
The Lower and Upper Houses will consider the Tax Plan in November and December. Supporters see the measure as a simpler tax system and a targeted way to increase revenue. Opponents will chiefly point to higher consumer prices, pressure on margins and possible harm to an internationally competitive industry. Those effects have not yet been definitively established.
One story, several perspectives
What is established
- The cabinet proposes raising VAT on ornamental horticultural products from 9 to 21 per cent from 2028.
- The Lower and Upper Houses still have to consider the Tax Plan.
- The cabinet estimates the additional revenue at approximately 305 million euros.
- The ornamental horticulture sector had an export value of approximately 12.3 billion euros in 2025.
Left
Arguments A higher rate can be defended if the current reduced rate primarily benefits higher incomes and public funds are needed for social services. The measure must, however, be assessed in terms of affordability for lower incomes and the protection of workers in the sector.
Values Redistribution, affordability and public funding.
Consequences Consumers may pay more, but the revenue could create room for other public spending. Without compensation, the measure could weigh relatively heavily on people with little financial leeway.
Centre
Arguments A broad and simpler VAT system is understandable, but the government must make the transition workable and monitor the effects on prices and businesses. A phased introduction or review point could limit uncertainties.
Values Practicality, predictability and institutional prudence.
Consequences The measure could generate revenue without direct spending cuts, while a transitional arrangement could cushion the shocks for businesses and consumers.
Right
Arguments The increase is a tax burden on consumers and on a Dutch industry that competes internationally. If the government needs more revenue, this perspective holds that limiting spending would be more logical than placing a heavier burden on popular products.
Values Low taxes, entrepreneurship and competitiveness.
Consequences Higher prices could depress demand and prompt companies to reduce margins, relocate activities or hire fewer staff.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts were checked directly with the Dutch government and supplemented with agricultural figures from CBS and Wageningen University & Research. The text distinguishes cabinet estimates from established market data.
- confirmed The cabinet wants to raise VAT on flowers, plants and flower bulbs from 9 to 21 per cent from 2028. — This is stated in the Dutch government's explanation of the 2027 Tax Plan. source
- confirmed The measure still has to be approved by the Lower and Upper Houses. — The Dutch government states that both Houses still have to vote. source
- confirmed The cabinet expects approximately 305 million euros in additional revenue each year. — This amount is given as a cabinet estimate. source
- confirmed The price of flowers and plants could rise by up to 11 per cent, according to the government. — The Dutch government cites this as a possible effect if the full increase is passed on. source
- confirmed The export value of ornamental horticultural products was approximately 12.3 billion euros in 2025. — This is stated in the joint agricultural publication by CBS and Wageningen University & Research. source
Editor's note
The proposed VAT increase, the amount of 305 million euros and the maximum price increase are cabinet estimates. The parliamentary process and the eventual effect on prices, margins and employment remain uncertain.Sources
- Plannen kabinet voor hogere btw op sierteelt en ballonvaart — Rijksoverheid
- Koopkrachtcijfers gelekt: minima er licht op vooruit, hoge inkomens iets in de min — NOS
- De Nederlandse agrarische sector in internationaal verband – editie 2026 — CBS en Wageningen University & Research
More on this in Dutch media
- Het Parool — „btw bloemen”
- de Volkskrant — „btw bloemen”
- NU.nl — „btw bloemen”