Flemish Minister for Environment and Energy Zuhal Demir (N-VA) asks the federal government to review its decision on the increase in VAT on demolition and reconstruction. “This goes strongly against the climate ambitions of the Flemish government. It is incomprehensible that the federal level does not see this,” says Demir in a press release.
The budget agreement shows that the federal government will increase the reduced VAT of 6 percent on demolition and reconstruction after 2023. The construction sector reacted with disappointment, and Demir is also dissatisfied. She points out that demolishing and rebuilding outdated buildings is often more efficient in reducing energy bills than partial renovation. The higher VAT threatens to make these projects easily 50,000 euros more expensive, says Demir.
“A completely wrong signal,” concludes Demir. “By 2050, 2.9 million homes must be renovated energetically. Sometimes it makes more sense to demolish and rebuild. Raising the VAT on such projects will therefore be no more or no less than a brake on the Flemish energy supply.” and renovation policy. I therefore ask the federal government to review this decision,” the Flemish minister said.
Anyone who is currently not eligible for the reduced VAT is eligible for a Flemish premium. In view of the higher VAT, this premium and its scope will have to be evaluated during the evaluation of the Flemish climate plan, Demir pointed out. That evaluation will take place in the spring of 2023.
Earlier, Demir announced that the premiums for solar panels will be irrevocably halved next year, despite the major supply problems. “We are phasing out because we don’t want to fall into over-subsidies,” said Demir. Anyone who installs solar panels this year and can have them inspected before December 31 can still receive a premium of up to 1,500 euros. Next year, that will irrevocably halve to 750 euros.
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