Parliament approved on Thursday a bill to make permanent the reduction of VAT on gas and electricity from 21 to 6% from 1 April.
VAT on gas and electricity has been reduced to 6% for almost a year. This was originally a “temporary” measure to reduce energy bills. From 1 April, this rate will therefore become permanent.
At the same time, a reform of excise duties, which are less subject to price fluctuations than VAT, will take effect.
In addition, the proposal by Finance Minister Vincent Van Peteghem makes a distinction between basic and ‘additional’ consumption. If prices rise sharply, the additional income will be deducted from basic consumption through excise duties.
The government has also decided to introduce a new tax system to help reduce the tax burden on citizens.
