Prime Minister Alexander De Croo is prepared to look within the government at the indexation of the tax scales and how this can be used most effectively. The Prime Minister stated this this evening in ‘Terzake’ on Canvas.
Wages follow the evolution of the lifespan via automatic wage indexation. The tax scales that determine which tax bracket a person falls under are indexed once a year. “In principle, that is not a problem,” said Prime Minister De Croo, “because then there is only one indexation per year or every year and a half.”
But due to high inflation and successive indexations, “we are in an exceptional situation today”. As a result, the government, without really intending it, is raising additional tax revenues. The Prime Minister does note that the government has taken a lot of measures, such as an intervention of more than 4 billion euros in energy bills, including through lower taxes. Minister of Finance Vincent Van Peteghem (CD&V) previously stated that the costs of an early indexation of the scales could amount to one and a half billion euros.
The prime minister reiterated his plea for measures that are temporary and highly targeted. According to the prime minister, today is not the time for the “nice ideas” that have been launched in recent weeks to increase purchasing power. “I haven’t seen any of those proposals on the government table and I’m not going to let them come up. We don’t have the resources for them and they don’t go to the pain points.”
De Croo also indicated that he wants to conclude the negotiations with Engie Electrabel about the extension of the two youngest nuclear power plants before the end of the summer. The pension reform must be agreed before the summer recess.
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