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The Minister of Finance wants to abolish VAT on fruit and vegetables: “Our tax system is old”

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

The Minister of Finance, Vincent Van Peteghem (CD&V), unveils in the columns of Le Soir and Sudinfo on Saturday, his major tax reform project, with a desire to implement it at least partially during this legislature.

Mr. Van Peteghem wants to dust off a system that he considers archaic. “Our tax system is old, we are still evolving on the basis of a family model with two children, a house, parents doing the same job pretty much their whole life, their whole career, and that has changed profoundly”he argues.

The Minister also wants to reduce the tax burden on work: “In Belgium, we are the European champions of labor taxation. On the menu of this first phase of the tax reform: fruits and vegetables, in particular, exempt from VAT (it is currently at 6% on these products) thanks to a “health shift”.

Electronic cigarettes too, whose price the minister wants to inflate with excise duties. And the tax-exempt portion, which he wants to increase from 9,000 to 13,000 euros. As for the financing of this tax shift, Mr. Van Peteghem turns mainly to companies, details L’Echo. The minister intends to intervene at the level of withholding tax and RDT (definitively taxed income), which at cruising speed should bring in 1.5 billion euros.