Home News Tax cut to be less than was first promised

Tax cut to be less than was first promised

Published on 31/10/2014

According to a report in Friday’s edition of the financial daily De Tijd the average tax reduction will be just EUR 125 per annum instead of the EUR 250 that had been announced.

Prime Minister Charles Michel’s Federal Government not only decided to cut expenditure and increase some taxes, such as excise duty.

The liberal, Flemish nationalist and Flemish Christian democrat coalition also decided to increase the level of the flat rate that can be set off against tax as expenses incurred while worked.

The Federal Government had ear-marked EUR 900 million for the measure and had estimated that the average working Belgian would pay EUR 250 a year less in tax as result of the measure.

However, figures contained in the draft budget that was handed over to the European Commission show that just EUR 450 million has been ear-marked for the measure, just half of what had been announced.

EUR 125 year won’t be anything like enough to compensate for the money lost as a result of the Federal Government’s other plan not to make wages by 2 percent when the so-called “index” is exceed early next year.

However, working Belgians can expect a further tax cut in 2016, a year than was originally planned; the Finance Minister Johan Van Overtveldt’s office told De Tijd.


Flandersnews.be / Expatica