Energy expert Luc Pauwels knows a solution that has already been on the table. “Then our government decided not to do that. However, other countries do. We have a rate of 21 percent on our electricity, Great Britain charges 5 percent. Spain has also significantly reduced its VAT, and other European member states also charge much lower rates. In other words, it is possible, and this has already happened in our country in the past. In 2014, the VAT on electricity was reduced from 21 to 6 percent for a while.”
What, according to Pauwels, is not possible, is lower the VAT for people with a lower income and keep a rate of 21 percent for people who can collect it. “That was proposed to the federal government, but it doubts whether Europe is allowed to do that.”
An overall drop to 6 percent is the only means the federal government has left: “It has already changed rates to excise duties so that it can pull them down when energy prices rise. However, she only has a margin of 90 euros there. If you are faced with increases on your bill of 1,500 euros now and 700 euros three months ago, that total will be wiped away. The Flemish government can make an effort by lowering its rates, taxes and levies, a first step has also been taken in this regard. But they are plasters on a wooden leg. If they intervened on VAT, people would not be able to save a hundred, but a few hundred euros.”
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