Dutch Tax Hike Threatens to Devastate Cultural Sector

A planned Dutch government cutback on subsidies and a sharp increase in value-added tax (VAT) from 9% to 21% could cost the cultural sector between €200 million and €350 million annually, according to an assessment commissioned by private financiers, local councils, and arts organizations. Currently, around half of the cultural sector`s funding in the Netherlands comes from government and local council subsidies. The VAT hike is expected to drive up ticket prices, leading to an estimated 9% to 12% drop in visitor numbers, the report suggests. Additionally, income from lottery organizations is forecasted to decline due to higher taxes on gambling, while local councils facing financial pressure may redirect funding elsewhere. These government measures, which were not subjected to a financial impact assessment, aim to reduce the sector’s reliance on subsidies. “This has nothing to do with the survival of the fittest,” director of the Cultuurfonds Cathelijne Broers (pictured) told broadcaster NOS. “Every artist, organisation and theatre company in the Netherlands will suffer. This is going to cut and burn through the sector: subsidised and unsubsidised organisations, well-known artists and those just starting out, across the country, not just the Randstad,” she said.