IMF recommends Ex'tax

14 Jan 2014

In 2012, the IMF has published a report containing recommendations for Belgium, including the advise to increase environmental taxation and to use the revenue to reduce labour taxation. Such measures will, according to the IMF, result in a reduction of unemployment.

“Labor taxation in Belgium", the report states, "is currently about the highest in the OECD, thus suggesting the need for a sweeping reduction in labor taxes as a key mechanism to boost employment and growth.” Especially employers’ social security contributions should be lowered, according to the IMF.

A link to the report can be found here: Belgium: Selected Issues Paper (IMF Country Report No. 12/56) [pdf].