Deputy PM urges higher tax-free threshold
2 September 2005, BRUSSELS — Federal Deputy Prime Minister Didier Reynders has proposed lifting the tax-free income threshold and increasing fixed tax deductions for professional costs.
2 September 2005
BRUSSELS — Federal Deputy Prime Minister Didier Reynders has proposed lifting the tax-free income threshold and increasing fixed tax deductions for professional costs.
The Reform Movement MR leader will place the two tax reform proposals up for discussion among federal government ministers next month, newspaper 'De Tijd' reported on Friday.
The Belgian tax system was last reformed in 2001 and the system has been running smoothly this year. Reynders now wants to push through further reforms.
He proposed raising the tax-free threshold on a step-by-step basis, effectively meaning a tax cut for everyone. However, the tax cut will be felt most by low-income earners.
"It is abnormal that someone who earns less than the minimum loan is taxed. By raising the tax-free amount, you will less quickly enter the lowest tax bracket," he said.
Reynders also proposed a tax reform measure that will only apply to employed workers. He wants to raise the fixed deduction amount for professional costs.
Workers can deduct from their taxable income a fixed amount for work-related spending. "By raising the fixed deduction, the public will retain more on a net basis," he said.
[Copyright Expatica News 2005]
Subject: Belgian news