Belgian prime minister says VAT reform must be rewritten
Belgium’s prime minister, Bart De Wever, has said the government’s planned VAT reform will have to be rewritten after strong criticism from the Council of State.
The legal body warned that key parts of the reform are unclear and may not stand up in court. It questioned higher VAT rates on cultural events and takeaway meals, saying there are no clear rules to justify the differences.
The reform, agreed last year by the coalition government, was meant to raise hundreds of millions of euros for the budget. It was due to start on 1 March.
However, De Wever admitted the plan had become too complicated. Speaking to VRT NWS, he said it was the result of late-night negotiations and many compromises. “It looked good at five in the morning, but in daylight it’s a very ugly beast”, he said.
Under the plan, VAT would depend on factors such as the type of show or how long food can be kept. Critics said this would confuse businesses and customers.
Although the Council of State’s advice is not legally binding, the government is taking it seriously. There is a risk the reform could be cancelled by the courts.
Vice prime minister Frank Vandenbroucke has also called for changes. De Wever now plans to bring the five coalition parties back to the table to find a new agreement.
It is unclear whether any of the new VAT rates will start on time. This creates problems for the budget, as the government was counting on extra tax income this year.
© BELGA PHOTO TOM GOYVAERTS