The federal government has taken a number of measures to counter the high energy prices. As a result of the measures, families will see their bill eased by about 165 euros in four months. There will also be a small tax shift. “Last night we made a number of decisions that should protect people’s purchasing power,” said Prime Minister Alexander De Croo (Open Vld) at the press conference about the agreement. An overview of what was decided.
Read everything about the energy agreement in this file.
• The VAT reduction for electricity from 21 to 6 percent will take effect on March 1 and will last until June 30. The VAT on natural gas will remain unchanged, at 21 percent.
• There will also be a heating premium of 100 euros for everyone, including those who enjoy a social rate. Those who use gas or fuel oil also receive the heating premium. The premium will be paid automatically via the electricity bill.
• Finally, the government has agreed to extended social rate to be extended until the end of July. As a result, almost a million vulnerable families enjoy a cheap energy tariff, but that was in danger of ending at the end of March.
“With this package of measures, we are sending a clear signal,” said Finance Minister Vincent Van Peteghem (CD&V) during the press conference. “We give back the additional revenues that we receive as government to the families.”
excise
There will also be a VAT reform, which would be based on a cliquet system that could modulate energy taxation through excise duties. This system, which already exists today for fuel prices, makes it possible to adjust excise duties to the energy price. If the price rises above a certain level, the excise duties fall, and vice versa. Even those who consume more can be charged more.
It is still unclear exactly how this excise tax reform will work. “We will continue to study the excise tax reform with the aim of dealing with price volatility. The question before us is: ‘How can we ensure that excise duties act as a shock absorber on the invoice?’” said Energy Minister Tinne Van der Straeten (Groen). On 1 March, ministers Van Peteghem and Van der Straeten will present their proposal to the rest of the core cabinet.
tax shift
In addition to the measures to compensate for the high energy bill, a number of other measures were taken to increase purchasing power.
• Here’s a increase in minimum wages, from 1,699 to – with the indexation – 1,800 euros.
• By the abolition of the special social security contribution, employees who earn up to 3,500 gross per month will have to contribute 100 euros less per month.
• In addition, more employees will be entitled to a work bonus. After all, the upper limit for those who are entitled to this work bonus is raised to a gross monthly wage of 2,841 euros. “This means a net additional purchasing power of EUR 153,” said Deputy Prime Minister Frank Vandenbroucke (Vooruit).
These measures will be offset by the introduction of a boarding tax for both commercial and business flights. Excise duties on tobacco will also be increased.
1.1 billion euros
All measures taken together will cost the government 1.1 billion euros, announced Energy Minister Tinne Van der Straeten (Groen). “In October, when the budget was drawn up, EUR 760 million was already made available for those who needed it most. That is now being supplemented,” it sounds.
Also read: Readers show their energy bill: “Last year 880 euros per year, now about 2,200 euros”(+)
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