Alphen and eight other municipalities raise concerns over higher VAT on flowers and plants |
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Mayors fear consequences for the ornamental horticulture sector and efforts to make towns and cities greener
Nine municipalities, including Alphen aan den Rijn, are opposing the planned VAT increase on flowers, plants and trees. The Dutch government intends to raise the rate from 9 to 21 per cent on 1 January 2028. According to the municipalities, this would not only affect the ornamental horticulture sector but also make it more expensive to create greener gardens and residential areas.
| Illustrative image generated with AI |
The mayors have jointly sent a letter to the State Secretary for Finance and the Dutch House of Representatives, calling for the reduced VAT rate to be maintained. Concerns are particularly strong in regions with many nurseries, such as Greenport Boskoop. According to research by Decisio, the VAT increase could result in a loss of turnover of between 674 million and 830 million euros, including the impact on suppliers. An estimated 2,280 to 2,820 jobs could also be lost.
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Public authorities encourage greening, but higher VAT would make trees and plants more expensive
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Higher plant prices could hinder greening efforts
The municipalities also highlight the consequences for public spaces and private gardens. Trees and plants help reduce heat stress, absorb rainwater and support biodiversity. Municipalities are increasingly encouraging residents to make their gardens greener, for example by replacing paving with plants. Higher VAT could make this less attractive.
For municipalities, greening private gardens is a particular concern. They have less direct influence over private gardens than over public spaces. According to the mayors, keeping plants and trees affordable can encourage residents to take action themselves.
Higher VAT could offset part of municipal greening subsidies
The financial impact on residents could also be considerable. Calculations by Graszodenkopen.nl show that, if the VAT increase is passed on in full, planting a 45-square-metre garden bed could cost an additional 69 to 178 euros. This could offset a substantial proportion of municipal greening subsidies. In Eindhoven, the subsidy examined amounts to 5 euros per square metre. For 45 square metres, that comes to 225 euros. The additional VAT could therefore absorb approximately 30 to 79 per cent of the subsidy. In Rotterdam, where the subsidy examined is 10 euros per square metre, the equivalent figure is 15 to 40 per cent. These are illustrative calculations based on subsidy schemes from 2026, not average garden prices. The subsidy amounts themselves would not change as a result of the VAT increase.
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Research suggests the VAT increase could lead to a loss of turnover of up to 830 million euros
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Economic damage versus tax revenue
The Dutch government expects the measure to generate an additional 305 million euros in annual tax revenue. According to Decisio, the actual revenue could be lower due to changes in consumer purchasing behaviour, at between 213 million and 216 million euros. The mayors therefore question whether the additional tax revenue would outweigh the economic and social consequences.
Nine municipalities call for reduced VAT rate to remain
In addition to Alphen aan den Rijn, the municipalities of Aalsmeer, Westland, Horst aan de Maas, Katwijk, Nieuwkoop, Lansingerland, Peel en Maas and Venlo have signed the letter. They are calling on the government and the House of Representatives to retain the reduced VAT rate.
The VAT increase is not yet final. Both the House of Representatives and the Senate must still consider the proposed change.
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The municipalities fear that higher plant prices will discourage residents from making their gardens greener
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This article was previously published on 19 October 2026 on the website of Stad + Groen.
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