The proposed increase in VAT on floriculture, as announced on 30 January 2026 during the presentation of the new cabinet's coalition agreement, will have very negative consequences for greening, well-being, employment and the Netherlands' export position. Ultimately, the measure will not generate the intended additional revenue for the national budget.

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Greening cities, restoring biodiversity and creating a healthy living environment are rightly high on the new coalition's agenda. Floriculture plays a key role in this. Flowers, plants, trees and bulbs make cities greener and cooler, provide food for bees and other pollinators and help combat climate change.

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A colourful living environment also improves people's health and well-being. An increase in VAT on floriculture is at odds with the coalition's ambitions for a greener, healthier Netherlands and makes it impossible for people on low incomes to buy flowers and plants for their homes.

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A research report by WUR (2023) shows that a VAT increase in the Netherlands alone will lead to a decline in consumer demand of 390 million euros, resulting in the loss of 2,440 full-time jobs in the supply chain. In practice, this mechanism appears to work as follows. In Spain, the reduced VAT rate of 8% was increased to 21% in July 2012. Between 2012 and 2014, product revenues in the supply chain fell by more than 25% and 23% of florists went bankrupt. In 2015, the reduced rate was therefore reintroduced in Spain.

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Floriculture is one of the most valuable sectors in the Netherlands, with:

• an export value of approximately €9.1 billion for floriculture products in 2024;
• employment: floriculture provides 65,000 jobs in the Netherlands (WUR report, 2023);
• innovation: the sector provides innovative cultivation methods and is knowledge-intensive, accounting for approximately 5% of total Dutch R&D expenditure.

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A VAT increase weakens our export position: Dutch flowers, plants, trees, and bulbs become luxury products. Other EU countries are opting for a reduced rate precisely to maintain trade, employment and competitiveness.

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The low VAT rate, in force since 1975, ensures that flowers and plants remain affordable and supports greening, well-being, employment and competitiveness.

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