Belgium adopts €7.2 bln tax shift

27 Aug 2015


The Belgian government has reached a deal on a tax shift from labour to consumption. A series of measures are to generate more income, which will be used to reduce the tax burden on labour. The goal is to improve the competitiveness of Belgian businesses.

In order to tackle the so-called "wage handicap", the coalition has agreed to lower the employers' health care contribution. The aim is to reduce the wage burden for employers and to create new jobs. The average working Belgian should also benefit from the tax shift, welcoming € 100 more per month.

Amongst other measures, excise duties on diesel, alcohol and tobacco will go up. VAT on electricity will increase from 6 to 21 per cent.

The total tax shift should represent a total of € 7.2 billion by 2018.