Green Budget Europe welcomes Belgium’s tax reform
Belgium is the member state to undertake a significant tax shift most recently (October 2015). By 2018 its reform is expected to reduce labour taxes by €7.2 billion. The single largest change is €2.7 bn of additional taxes with environment and health benefits (e.g. higher diesel taxes; sugary drink tax), a further €2.4 billion in capital taxes, with the remaining €2.1 bn coming from anti-fraud measures, federal administrative changes and other reforms.
Belgium expects to unlock an additional €4 billion in purchasing power and a further €3 billion in enhanced competitiveness. The reform favours the lower paid. Those on gross monthly wages of €1,500 are to gain an additional €140 per month while employees earning €3,300 will take home an additional €90 a month. There are also gains for pensioners, those on social security and an enhanced mobility allowance.