For Prime Minister Alexander De Croo (Open Vld) the permanent retention of the 6 percent VAT on electricity is not obvious. He says that in VTM NIEUWS. This weekend, Open Vld chairman Egbert Lachaert had a interview with The Latest News know that he is in favor of a permanent VAT reduction on electricity.
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In order to reduce the exploding energy bills, the federal government decided this spring to lower the VAT on electricity and gas from 21 to 6 percent. Since then, the Socialists and Greens have regularly been flying balloons to keep the VAT – certainly for electricity – at 6 percent. CD&V is also in favor of a definitive VAT reduction, although this must go hand in hand with an excise tax reform in order to distinguish between frequent consumers.
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This was difficult for the liberals, because of the high cost of the measure. This costs the government an estimated 1 to 1.5 billion euros per year. Only maintaining the VAT reduction on electricity costs “only” 500 to 750 million euros per year.
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Party chairman Lachaert nevertheless announced in an interview this weekend that he “logical” thinks that the VAT on electricity will definitely remain at 6 percent† “Certainly because everything – from our cars to our heating – will have to become electric in the future to reduce CO2 emissions,” says Lachaert.
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“Wider discussion”
Prime Minister De Croo (Open Vld) is not so sure. “As long as prices are high, the VAT on electricity will remain at 6 percent this winter,” he admits in VTM NIEUWS. But he makes no guarantees that it will remain that way: “How we do it after that is part of a wider discussion.”
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De Croo emphasizes that VAT will not be increased if prices do not fall in the autumn. “If the prices are still so high in August and September, then we will of course not raise the VAT again to 21 percent. There is no discussion about that.”
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Also read: INTERVIEW. Open Vld chairman Egbert Lachaert: “VAT on electricity definitively at 6%” (+)
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Watch the full studio conversation with Alexander De Croo (Open Vld) in VTM NIEUWS below:
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