Low incomes to benefit most from tax shift
Income tax cuts are planned under the Belgian government's tax reforms, of which a recent survey showed that low-income earners will receive the greatest rise in net income.
Accord to figures contained in the annual salary survey carried out by the audit, advice and consultancy bureau Deloitte, those on low incomes will in time be the greatest net beneficiaries of the Federal Governments tax shift measures.
As a result of the shift in taxation from labour to other sources, those on low incomes will see their net salaries rise by 10% over the next 5 years. Income tax will fall considerable, even when compared to other European countries.
Deloitte’s Patrick Derthoo told journalists that "We will finish in the top 5 when it comes to working couples with two children. We will also move up a few place when it comes to low taxation levels for single people too.”
Higher earns will sees their net incomes rise relatively less than those on more modest incomes. There will also remain among the most highly taxed employees in Europe.
However, the Deloitte doesn’t take into account new taxes or increased taxation (e.g. higher duty on drink and tobacco products) and cuts in subsidies that may result in price rises to services. This means that the survey gives no indication of future purchasing power.
Flandersnews.be / Expatica