Belgian federal budget deal introduces higher taxes on air travel, overseas parcels and accommodation
After months of negotiations, the federal government finally produced white smoke this morning: a budget agreement has been reached. The consequences extend beyond Belgium’s borders, as not only hotel stays will become more expensive, but parcels from abroad and air travel will also face higher charges.
There will be no general VAT increase, but targeted rises on specific goods and services, the federal government confirmed this morning.
We argued for nine per cent instead of twelve
VAT on hotel accommodation will rise from 6 per cent to 12 per cent. According to the Brussels Hotels Association (BHA), this will put pressure on the competitiveness of Brussels hotels in the international market. “We argued for nine per cent instead of twelve,” a spokesperson reacted. “We often work with long-term contracts; without a transition period, this measure will harm the sector.”
BHA also warns that the Belgian hotel sector will be placed at a disadvantage compared with domestic tourist rental platforms such as Airbnb. “It is paradoxical that the traditional sector, which creates employment, is subjected to a higher VAT rate, while ‘informal’ and sometimes illegal competitors continue to benefit from a lower tax burden,” the association says.
VAT on camping accommodation will likewise rise from 6 to 12 per cent. The same applies to sports subscriptions, entertainment such as cinema tickets, and takeaway food. Ordering parcels from non-European online retailers such as Shein, AliExpress and Temu will also become more expensive due to the new two-euro parcel tax.
The cost of air travel will also increase. The tax on short-haul flights will double from 5 euros to 10 euros per seat in 2027. Brussels Airlines has criticised the move, saying that the Belgian government is "going against the trend". "Italy and Germany have reduced their flight taxes, and Sweden has abolished its own," said spokesperson Nico Cardone.
He added that Brussels Airlines can't absorb the extra cost itself and will therefore have to pass it on to passengers. The airline also reiterated its call for efficient, high-speed rail links to Brussels Airport, which could replace short-haul flights like those from Paris.
© BELGA PHOTO HATIM KAGHAT
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