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Dutch arts and culture trade organisation Kunsten ’92 has criticised the government over its plans to increase VAT and gambling tax as it will result in a €350m (£295m/$390m) hole for the sector.
Mixed together with a reduction in municipal and government subsidies, the body argues it could be “disastrous” for arts and culture.
Kunsten ‘92 argued the deficit would have a “negative domino effect in the arts and culture sector”, and that this was evident from an analysis commissioned by private financiers, municipalities, the Culture Fund and Arts ’92.
“We as a consortium are sounding the alarm. The uncoordinated pile of cuts and measures has a huge impact on the entire arts and culture sector, both in the short and long term,” said Cathelijne Broers, director of the Culture Fund.
The analysis demonstrates that the new government measures will have a negative impact on the culture sector, according to Kunsten ‘92. The increase in VAT from 9% to 21%, as well the increase in gambling tax and reduction in subsidies, will result in a loss of €350m per year in revenue.
“This is due to the decrease in public spending, less subsidy and less private income. There is no difference between subsidised and non-subsidised cultural expressions, large renowned companies and new talents and cultural participation within or outside the Randstad,” commented Broers.
The Randstad is the most populated section of the Netherlands, featuring the country’s most populous cities: Amsterdam, Rotterdam, The Hague and Utrecht.
Additionally, the analysis suggests that the proposed measures could impact jobs and the Netherlands’ Gross Domestic Product (GDP), as the culture sector contributes roughly €5.5bn.
Kunsten ‘92 has called for the postponement of the VAT increase, so that there can be a “thorough investigation into the actual returns and consequences for the sector”.
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