Will the VAT in Belgium be revised upwards? “The High Council of Finance, the Belgian government’s advisory body on public finances, has proposed to raise VAT from 21% to 22%”says Comeos, which represents trade and services in Belgium.
The organization is very critical of this proposal. “At a time when inflation exceeds 8%, it is cynical to propose an increase in VAT to 22% and 7%. Citizens and businesses are already facing steep price increases caused by the conflict in Ukraine and global supply problems. Ask 100 Belgians if prices in stores should increase further… I think we know the answer”, ironically slipped the CEO of Comeos Domonique Michel.
A new blow once morest neighboring countries
What is more, such a modification would represent a clear handicap for Belgian companies, the boss of Comeos citing the 19% VAT in Germany. With 3% more VAT in Belgium, “Where will Belgian consumers shop from then on?”, he wonders.
This Council proposal aims to reduce the tax burden, but the effectiveness of the measure remains to be seen, the statement continues. “It is no coincidence that the debate in our country is once once more very concretely regarding the type of tax to be increased. The question of which tax will come down next is much less clear, and in times of skyrocketing budget deficits, a tax shift is likely to quickly turn into a tax lift,” he concludes.