Peeters upbeat about new Flemish housing policy
The tax deduction of mortgage loans which currently applies in Belgium will be abolished as soon as power devolves to the federated states by 2014 at the latest. New systems will then be devised by the states in respect of tax refunds or rebates. Minister-president Kris Peeters CD&V like Flemish Budget and Finance Minister Philippe Muyters N-VA, expressed support of the region’s future fiscal possibilities to guide a Flemish housing policy. Peeters further stressed that Fanders will also establish its own system to encourage mortgage loans. “People should not worry that everything tax deductions, ed. will fall away. We will honour our responsibility in this crucial sector. During the course of the year we will make it clear what we intend to highlight,” Peeters said on Radio 1. Earlier in the day Minister Muyters said that he could not really determine the impact of the transfer of tax deduction on mortgage loans and was not sure whether the transferred budgets would cover expenditure. Questioned on this matter in the federal Parliament, federal Finance Minister Steven Vanackere CD&V confirmed that a total budget of 1.4 billion euros in will be transferred to the federated states regions of which 929 million euros has been allocated to Flanders. This equals the total amount of current mortgage deductions after the Di Rupo administration reduced it to a fixed 45%. “It would be unthinkable that only 90% would be transferred,” Vanackere stressed. “We will not dictate what the federal states should and may do, but every region that prefers to stick to the previous system will have sufficient financial means,” he added. By February the government of Flanders would like to know exactly which powers are to be transferred. “We will then check the balances in respect of transferred budgets and powers. Any uncertainties will be discussed with the federal government afterwards,” Muyters confirmed.