Beyond the observation and the fear of loss of competitiveness of Belgian companies, the inevitable increase in cross-border purchases and the impact of the tax reform on employment, FEVIA is advancing solutions to reverse the trend. “Yes, it is possible to limit cross-border purchases and our decision-makers have the keys to remedy this. “Rather than turning a deaf ear, the government should finally take cross-border purchases into account when making political decisions. The standardization of VAT rates will not bring in the expected 1.777 billion euros and history teaches us that any increase in the indirect taxation leads to a displacement of part of the food purchases of Belgians on the other side of the border”, details Carole Dembour, economist with FEVIA.
Secondly, action should be taken on the burdens that weigh on businesses. “And the list goes on! Let’s cite, by way of example, the idea of extending the packaging tax so that it yields 60 million euros more per year. This is in addition to the 350 million countries each moreover, even if the obligation for producers to bear the cost of illegal packaging is imposed by Europe, Belgium holds the upper hand by extending the obligation to all packaging and chewing gum We arrive at an absurd situation where the chewing gum sector, which has a retail value of 43 million euros, would have to pay 24.7 million euros.”
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Finally, Carole Dembour calls for parafiscal, fiscal and regulatory measures. “Reduce excise duties, for example, transform the packaging tax into a real incentive tax for sustainability or lower employer contributions: by taking such measures, our decision-makers can melt the price differential once morest us like snow in the sun!”
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