Savers to cough up EUR six billion
A flood of criticism on taxation of savings
BRUSSELS – The High Council of Finance has called for the introduction of new indirect tax schemes worth some EUR 6 billion. A substantial indirect tax will, among other things, be imposed on savings. Both in political and financial circles the plan has been criticised.
Professor Bernard Jurion of the High Council of Finance is to present the official report on tax on labour, employment and competition to Finance Minister Didier Reynders today. The key issue is that labour costs should be reduced. To achieve this EUR 6 billion is needed to compensate for this. The High Council for Finance suggests raising VAT, higher tax on savings and investments, and higher eco tax .
Tackling savers now would amount to political suicide for the Christian Democrats and the Liberals. Even for the socialists this would be difficult to sell, although off-record they are calling this a courageous report.
Yesterday Minister Reynders diplomatically pointed out that there are other measures available to compensate for the reduction in labour costs which have not been included in the report. In other words Reynders is not in favour of the proposed rise in tax on savings. He suggested another option: curbing expenditure. The Open VLD and CD&V make no secret of the fact that they want to cut costs.
7 September 2007
[Copyright Expatica News 2007]
Subject: Belgian news