VAT on gas and electricity has been reduced to 6% for regarding a year, but this was a “temporary” measure to reduce energy bills in the context of exorbitant energy prices. This rate will therefore become permanent from April 1.
The fall in state revenue due to the reduction in VAT will be partly offset by a reform of excise duties. Finance Minister Peter Van Peteghem (CD&V) said earlier than until the end of this year that the VAT cut would mean a drop in revenue of 892.95 million euros, while excise duties would bring in 543.91 million euros.
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Impact on the bill
According to the consumer organization Test Achats, an average family will pay 16.5 euros less each month than before, when VAT was still 21% (38.5 euros less thanks to the reduction in VAT and 22 euros more due to excise duties). “And this saving will become even greater if energy prices rise and excise duties are reduced,” says Test Achats. After all, the excise reform includes a mechanism by which excise duties on part of consumption (the so-called basic consumption) decrease when energy prices exceed certain ceilings.
For natural gas, excise duties (on so-called additional consumption) may increase if the price falls sharply.
For the social tariff, the excise reform will not come into force until July 1.
here is how this measure impacts your bill
VAT on gas and electricity has been reduced to 6% for regarding a year, but this was a “temporary” measure to reduce energy bills in the context of exorbitant energy prices. This rate will therefore become permanent from April 1.
The fall in state revenue due to the reduction in VAT will be partly offset by a reform of excise duties. Finance Minister Peter Van Peteghem (CD&V) said earlier than until the end of this year that the VAT cut would mean a drop in revenue of 892.95 million euros, while excise duties would bring in 543.91 million euros.
Impact on the bill
According to the consumer organization Test Achats, an average family will pay 16.5 euros less each month than before, when VAT was still 21% (38.5 euros less thanks to the reduction in VAT and 22 euros more due to excise duties). “And this saving will become even greater if energy prices rise and excise duties are reduced,” says Test Achats. After all, the excise reform includes a mechanism by which excise duties on part of consumption (the so-called basic consumption) decrease when energy prices exceed certain ceilings.
For natural gas, excise duties (on so-called additional consumption) may increase if the price falls sharply.
For the social tariff, the excise reform will not come into force until July 1.
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