New Dutch cabinet opts for sugar tax and lower VAT for fruit and vegetables

The new Dutch government seems to be committed to health and sustainability. It has revealed plans to introduce a sugar tax and scrap VAT on fruit and vegetables. A label of origin is also part of the agreement.

The coalition agreement proposed by the new Dutch government coalition includes some remarkable measures that will impact the retail and food industry. For example, the government will increase taxation on sugary drinks in any case. There is also a possibility that a sugar tax will be introduced.

In the meantime, fruit and vegetables will become cheaper for consumers: the coalition wants to examine whether the VAT can be reduced from the current 9 per cent to 0 per cent. However, this will have to be done in consultation with Europe, as the EU currently applies a minimum rate of 5 per cent for these products.


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