Tax cut has not boosted home maintenance, builders say

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A temporary cut in the value-added tax rate on building renovations has failed to produce the hoped-for increase in orders, according to construction sector magazine Cobouw.

The btw tax rate on building labour was cut from 21% to 6% in March with the aim of encouraging people to spend money on home maintenance. The building sector's economic institute estimated it could lead to an extra €600m in orders.

But most builders report no effect from the change, Cobouw reported. ‘The trick does not work any more,' one person is quoted as saying. A similar cut in 2010 did produce an increase in orders.


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