What does the budget deal mean for you?

What does the budget deal mean for you?

12th October 2015, Comments 0 comments

Belgium's four party coalition has finalised the 2015 and 2016 budgets and has put the finishing touches to the tax shift reducing taxes on labour. So how will you notice all this in your pocket?

The deal is good news for people making less than 2,800 euros a month. They should find an extra 100 euros in their after tax wage packet by 2019. The lowest incomes under 1,500 before tax will get an extra 140 euros a month. Earn 3,300 euros before tax and you'll be 91 euros better off. People on less than 4,500 will still have an extra 78 euros a month to play with.

Taxpayers will be able to earn more before they pay tax too. The government's aim is to reduce labour costs. Employers' taxes on labour fall from 33% to 25%. SMEs get an incentive to hire people. Even independent professionals will pay a lower rate of  tax.

However, you may need the extra cash as duty is being increased on a whole array of products that the Belgian government believes is bad for us. Roll-your-own tobacco goes up 2.88 euros by 2018, a pack of ciggies rises 32 eurocents, a bottle of spirits is up 2.52 euros and even a bottle of wine becomes 17 eurocents more expensive. A new tax of 3 eurocents a litre goes on sugary drinks. DERV fuel is rising 4 cents in 2016 and in 2017 and a further 6 cents in 2018. Less duty will be due on petrol -sometimes called gas - down 2.6 cents three years in a row.

Capital gains tax is rising yet again, this time from 25% to 27%. A 33% speculation tax will be slapped on profits from the sale of shares within 6 months of purchase.

 

Flandersnews.be / Expatica

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