Court reverses Amsterdam’s canal cruise tax rise, company gets money back
A court has reversed Amsterdam's 2024 rise in its tax on canal cruise passengers. Part of the extra money was meant for free public transport for children, which the court said gives the boats no benefit.
Amsterdam was not allowed to raise its tax on canal cruise passengers from €1.50 to €2.50, the district court in Amsterdam has ruled. Part of the extra money was meant for free public transport for children and other city plans that, according to the court, give the boats no benefit.
The court gave its ruling on Friday 6 November in a case brought by a canal cruise company. For that company, the old rate of €1.50 per passenger applies again to the periods it challenged, and the city must refund the difference.
Why the city raised the tax
Amsterdam charges the levy, officially called the vermakelijkhedenretributie te water, on canal cruises and other paid entertainment on the water. From 2020 it was €1.50 per passenger.
For 2024, the city’s executive proposed raising it by 50 cents to cover shortfalls in its boating programme. The city council added another 50 cents for four plans: free public transport for children, a grant for teachers, greener public spaces and education projects against unequal opportunities. The rate of €2.50 took effect on 1 January 2024.
The city told the court that visitors should make a fairer contribution to Amsterdam, that their numbers keep growing, and that its costs for facilities the cruise companies use are many times higher than what the levy brings in. It also said the companies can pass the levy on in their ticket prices.
What the court decided
The court said a levy like this is not a general tax. It may only be charged for municipal facilities that the taxed activity benefits from. The four plans added by the council have nothing to do with shipping, so that part of the rise was unlawful.
For the other 50 cents, the city had not explained which facilities it pays for or how the cruises benefit, the court said. It also found that the council had not weighed the interests of cruise companies. The company said it could not pass the rise on quickly, because it agrees prices with travel firms up to a year ahead.
What happens next
The ruling covers the company’s payments for the third quarter of 2024 and the first quarter of 2025. Cases from three other cruise companies were heard at the same hearing.
The rate has since risen to €2.70 per passenger under a new regulation. This ruling does not cover that regulation.
The city can appeal to the Amsterdam Court of Appeal within six weeks. You can read the ruling on rechtspraak.nl (in Dutch).
