Mahdi (CD&V) remains optimistic about tax reform: “A lot can happen in five days” | Interior

LOOK. The full studio conversation with Sammy Mahdi

The July 21 deadline is increasingly being compromised because harsh language is being spoken behind the scenes. Many parties point to MR as the culprit and a party that blocks everything by refusing to negotiate. The MR defends itself and points out that they are making constructive counter-proposals. According to them, it is mainly the left-wing parties that do not want to listen to this. A spokeswoman for one of the cabinets summarizes it as: “The water is deep, very deep and perhaps too deep to reach an agreement within 5 days”.

Fortunately, there are also elements that the government has agreed on, notes our reporter Rob Van Herck. In order to retain more net wages, the government first wants to abolish the Special Contributions to Social Security (BBSZ). Now that part of our wages is withheld and goes directly to the government. The amount of the BBSZ is different for everyone. Each of us can consult the correct amount on the pay slip. In addition, the government wants to expand the work bonus. As a result, the lowest incomes receive an extra piece of net wage and the income limit is raised so that not only the lowest, but also the middle-incomes can enjoy this. The above measures relate to white-collar workers and blue-collar workers. The self-employed are not eligible for this, so the MR wants an additional discount for the self-employed.

All these measures together would cost the government 2 billion euros. To get this sum together, there is a proposal on the table whereby extra taxes will be levied on, for example, assets abroad or by reforming certain VAT rates, but this is where the shoe pinches for MR. The party wants a reform of the labor market in which more people are activated to work or, if necessary, forced to work, so that this will yield money in the long term and will pay off. Forcing people to work, on the other hand, is not possible for the left-wing parties. “Very deep water, very difficult talks and the question is whether an agreement will be reached before July 21,” said our reporter Rob Van Herck.

Our studio guest Sammy Mahdi (CD&V) is convinced that the core of our federal government will get around the table again and points out that this is necessary if they want to reach an agreement. “If you want to take a step in tax reform in this legislature, then there must be an agreement before July 21, but if everyone keeps their taboos on the table, then we will remain world champions in taxing people at work.” The party chairman points out that the working middle class needs to be given oxygen, but remains optimistic that “a lot can still happen in five days”.

Finance Minister Vincent Van Peteghem (CD&V) is praised as a stronghold of the Vivaldi government, but it is not possible to force things. Mahdi stands behind his minister and points out that you are sitting around the table with seven parties. “Vincent has succeeded well in doing what was expected of him at first. The tax blueprint is on the table so that we can get the system fairer. The people who work should benefit and those who use loopholes will be corrected in the new system.”

The party chairman will not comment today on who is blocking what, but points to the importance of sitting around the table together to find solutions. According to him, a more expensive VAT on bread, milk and butter is not an issue. “6 billion was our proposal, but other parties indicated that 2 billion is sufficient. If that is the size, you will not reach the shopping cart and you will not increase the VAT on food. In the long term, there must be VAT harmonisation. Today we have a lot of VAT rates, but they do not ensure an efficient way of collecting. Our proposal is therefore to shift a number of things to 0 percent, 6 percent and 21 percent. We have to make sure that those rates are applied correctly. The government must use all the energy to land on July 21 so that the working middle class benefits.”

Mobility Minister Georges Gilkinet (Ecolo) creates another point of conflict in the government. He wants to ban all night flights at Zaventem because of the noise. Party chairman Sammy Mahdi is not pleased with this proposal, which he says does not help anyone. “I call it green madness. It is a kind of green fundamentalism that is an equal threat to our prosperity and the climate. The reality is that we are dealing with noisy and polluting aircraft at Zaventem today.” According to Mahdi, that problem must be addressed so that our global status does not disappear.

The recession of the Flemish government has started on a minor note. No agreement has been reached on the nitrogen dossier, even though Deputy Prime Minister Hilde Crevits (CD&V) wanted an agreement, Minister of Agriculture Jo Brouns (CD&V) remained unwilling. Mahdi points out that everyone in his party wanted an agreement and wants to give farmers perspective. “Our farmers are part of our economy. It is important that we ensure that we continue to have food from us as part of our strategic autonomy.” The party chairman is convinced that his ministers will continue to work to provide a positive perspective. “We have to keep looking at our farmers and give them a future,” says Sammy Mahdi at ‘VTM News’.