The Workers' Party of Belgium (PTB-PVDA) has denounced the country as a "tax hell for workers" and suggested that the current coalition government cannot be trusted to reform its "particularly unfair" tax system.
In a press release published on Wednesday, the left-wing party also accused Finance Minister Vincent Van Peteghem (CD&V) of "giving in" to the Federation of Enterprises in Belgium (FEB), the country's main business lobby, in his weeks-long negotiations with coalition partners over tax reform.
"Belgium is a tax hell for workers (a gross monthly income of €1,500 is already subject to tax), but a tax haven for multinationals and large fortunes," the statement reads. "A profound reform was essential to do some justice to this tax system. But we obviously can't count on Vivaldi for that."
The party also repeated its call for a "real tax reform" which lowers taxes on low and middle-income Belgians and closes tax loopholes for corporations and the ultra-rich. It also expressed dismay that its recent proposal to tax wealthy individuals' assets was rejected by all of Belgium's federal parties last week.
"Once again, it is the ultimatums of the right that are applied and never those of the left," the statement added. "And there is above all the firm position of the large employers, through the voice of the FEB, which opposed this reform."
On Wednesday, Prime Minister Alexander De Croo (Open VLD) announced that the Federal Government will not reach an agreement on reform before Belgium's National Day (Friday 21 July) as originally planned, but that "the government's mission remains to reduce the budget deficit and work on a gradual return to balance after three years of crisis".
'Tax the rich!'
This is not the first time that the Workers' Party has openly called for a progressive reform of Belgium's tax code in recent months.
On Labour Day this year, the party officially unveiled its tax plan – entitled "Tax the Rich" – which calls for a 1% tax on Belgians' assets worth more than €1 million, 2% above €2 million, and 3% on those worth more than €3 million. The party claims that this "millionaire tax" would raise €8 billion in public funds.
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"A small group of the super-rich is getting richer, while the people who create the wealth are struggling to get through the month," party president Raoul Hedebouw said during a speech to supporters in Brussels. "And what does the government do? It increases excise taxes on our energy bills... It's enough. Tax the rich!"
Workers' Party leader Raoul Hedebouw delivers a speech to supporters on 1 May. Credit: Belga / Hatim Kaghat
"We can use that €8 billion for our pensions, for our health care, for our public services," Hedebouw added. "Of course, the right-wing parties are all against it. De Croo (Open VLD), Bouchez (MR), De Wever (N-VA), they all openly defend the richest."
Belgium is one of the most heavily taxed countries in the world, with individuals exempted from paying tax on only €10,160 of their annual income while those who earn more than €46,440 pay the country's top rate of 50%.
In France, by contrast, income of up to €10,777 is not taxed, while the top rate of 45% only applies to those earning more than €168,994.
