A proposal to grant tax exemptions to investors who hold shares for at least 10 years has come under fire from within Belgium's ruling coalition.
Both the Christen-Democratisch en Vlaamse (CD&V) and Vooruit (Flemish Socialists) weighed in against the idea in parliament, following the leaking of plans drawn up by Finance Minister Jan Jambon (Nieuw-Vlaamse Alliantie (N-VA) that reportedly included the proposed exemptions.
The exemptions would make it “impossible to achieve the projected revenue of €500 million by 2029,” Budget Minister Vincent Van Peteghem (CD&V) said on Thursday on the VRT’s Villa Politica programme.
The wealthiest should pay up - CD&V
He indicated that his party would evaluate the plans based on three criteria: the wealthiest should contribute, small savers should be protected as much as possible, and there must be revenue of at least €500 million by 2029.
The Budget Minister warned that if the government wants to meet its revenue target, it would be “unwise” to include too many exemptions in the capital gains tax. “Each additional exemption allows those who can use loopholes or seek advice from tax professionals to avoid paying, while small savers cannot,” he explained.
An exemption for shares held longer than ten years would make it “impossible” to meet interim revenue goals as well as the €500 million target, Van Peteghem asserted.
Exemptions were not in the coalition agreement - Vooruit
Speaking on behalf of Vooruit, Achraf El Yakhloufi emphasised adherence to the government agreement, which does not include the ten-year exemption.
“It’s good to have a concrete proposal on the table to finalise the last modalities,” the Flemish Socialist legislator said in response to Prime Minister De Wever. "In Vooruit you’ll find a partner to work out those modalities according to the government agreement.”
“The agreement specifies that distinctions should be based only on substantial interest,” he added, in a reference to shareholders with at least a 20 % stake in a company.
Dieter Van Besien (Groen) commented that the capital gains tax appeared to be “significantly weakened,” allowing “the strongest shoulders to escape.”
The administration is not tapping available funds - PvdA
Workers Party (Pv/dA) leader Sofie Merckx said the government was a “demolition administration” that failed to tax where funds are available. “We constantly hear that the coffers are empty, yet €4 billion were found for Defence in the Easter agreement,” she remarked.
Vincent Van Quickenborne (Open VLD) stressed that working people would bear the tax burden. “The liberals blocked this tax for 25 years; we fought it together when in government,” he said, addressing the prime minister. “And now that we’re out of the government, you’re implementing it.”
Wouter Vermeersch of Vlaams Belang accused the government of creating fiscal uncertainty. “This drowns the confidence of those who work, innovate, save, and invest, especially among the Flemish,” he stated.
Prime Minister Bart De Wever (N-VA) did not address the issue during parliamentary question time. He dismissed the debate as “fictitious” since the government had not yet reached a consensus, so no draft bill was ready for discussion in Parliament.