Belgium reaches budget deal: government introduces excess profit tax on energy producers

The Belgian federal government reached an agreement on the 2023 and 2024 budgets on Tuesday morning, the office of Prime Minister Alexander De Croo reports. Among other things, the budget deal includes an excess profit tax on energy producers. De Croo will present the deal's details during his policy statement in Parliament at 2.15 pm on Tuesday.

As part of budget negotiations in the face of mounting national debt, the Belgian federal government has agreed on an excess profit tax on energy producers. Combined with a yearly contribution from the nuclear sector and one-off contributions from gas network operator Fluxys and the petroleum sector, the energy measures will bring in over €3 billion.

An excess profit tax for energy producers has been on the table for several days, but the tax agreement has now been completely finalised according to several sources. The tax is said to take effect retroactively from January 1st of this year and would apply until November 30th. Starting from December 1, a price cap of 130 euros per megawatt-hour will be installed until June 2023. After that date, the possibility of extending the measure will have to be assessed. 

Gas network operator Fluxys will also be making a one-off €300 million contribution and the oil sector will be contributing two times €300 million. Altogether, including a yearly contribution from the nuclear sector, the energy measures would raise €600 million in 2022 and €2.5 billion in 2023. 

(KOR)

Belgian Prime Minister Alexander De Croo © BELGA PHOTO NICOLAS MAETERLINCK