Belgium to resist a VAT rise
- Feb 11, 2013 | Richard Asquith
Despite on-going speculation in financial markets for drastic action on the state deficit, the Belgian government is remaining adamant that it will not increase Belgium VAT from the current 21% rate.
Along with other European countries, Belgium has faced declining revenues in the face of the current economic crisis. This has mean it repeatedly missing the 3% budget deficit target which is a key requirement of membership to the Euro currency.
Many other European countries have raised their VAT rates, including Italy and France, to try and meet their deficits, and convince financial markets of their seriousness in curbing ballooning sovereign debt piles.
Belgian has recently seen its growth forecast cut from 0.7% to 0.2% by the Belgium National Bank. This followed a number of spending cuts and new tax raising proposals, including a cut the employer levy and a rise in the premium tax levy on life insurance policies.
However, the government again last week repeated that it does not believe it will have to raise the VAT rate. You can read more about Belgian VAT compliance here.