The tax reform proposal finally ready - Economic Policy

The tax reform proposal finally ready – Economic Policy

Finance Minister Vincent Van Peteghem (CD&V) has just put the finishing touches to a “blueprint for a vast tax reform”, a document which presents itself as an inventory of the measures which will be included in the reform. It should allow Belgians to retain more net income. Ecocheques will be abolished while company cars and meal vouchers will be maintained, most Flemish and French-speaking newspapers reported on Tuesday.

For Mr. Van Peteghem, those who work should have more money at the end of the month. The tax-exempt portion will thus increase from 9,270 to 13,390 euros, according to his proposal. At the same time, current tax rates will be reduced by 5%. A person earning the minimum wage of 1,825 euros gross per month would therefore earn 1,371 euros net on an annual basis. For someone who receives a gross monthly salary of 5,000 euros, the gain would be 3,965 euros.

In return, a number of favorable rates will be removed. Vincent Van Peteghem, for example, suggests taxing ecocheques, culture vouchers and sports vouchers in the same way as salaries. This would make them de facto useless. Contrary to previous proposals by experts, the Minister does not wish to touch meal vouchers and company cars. “A deliberate choice, because they are a lifeline for many families,” he justifies. Private trips with company cars would, however, be taxed more.

For Mr. Van Peteghem, those who work should have more money at the end of the month. The tax-exempt portion will thus increase from 9,270 to 13,390 euros, according to his proposal. At the same time, current tax rates will be reduced by 5%. A person earning the minimum wage of 1,825 euros gross per month would therefore earn 1,371 euros net on an annual basis. For someone who receives a gross monthly salary of 5,000 euros, the gain would be 3,965 euros. In return, a number of favorable rates will be removed. Vincent Van Peteghem, for example, suggests taxing ecocheques, culture vouchers and sports vouchers in the same way as salaries. This would make them de facto useless. Contrary to previous proposals by experts, the Minister does not wish to touch meal vouchers and company cars. “A deliberate choice, because they are a lifeline for many families,” he justifies. Private trips with company cars would, however, be taxed more.

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