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Energy prices: are we going to increase excise duties on gas and electricity? Already reactions to the project of the Minister of Finance

  • Post category:Economy News
  • Reading time:2 mins read

Belgians’ energy bill could rise from April: Finance Minister Vincent Van Peteghem is working on a reform of excise duties on energy. This is a reform to compensate for the reduction in VAT on gas and electricity from 21 to 6%. The point should be presented and discussed at the kern, restricted council of ministers, this Friday, January 27.

Last spring the government lowered this VAT to somewhat mitigate the effects of the explosion in energy prices. This decline should normally be temporary, and stop on March 31 of this year. But given the weight of the energy bill in the household budget, it is difficult to imagine a return of VAT to 21%.

The problem is that this extension of a 6% VAT is very expensive for the State: 1.3 billion euros in 2023. It is a drop in revenue that must be compensated. How ? By increasing excise duties on gas and electricity, the Minister of Finance proposes. Excise duties have the advantage of being fixed, unlike VAT they would therefore not increase in the event of a new explosion in energy prices.

The office of the Minister of Finance has made its calculations: the excise reform would represent an increase in the energy bill of around twenty euros per month for an average household. Enough to recover more than 500 million euros for the federal budget.

This reform will be discussed in government this week and Vincent Van Peteghem will now have to convince his majority partners.