Capital gains tax debate sparks rift between Vooruit and coalition partners

Tensions are rising within the Belgian federal coalition as the debate over a capital gains tax pits Flemish socialist party Vooruit against francophone liberal MR and other partners. Over the past week, pensions emerged as a flashpoint. Prime minister Bart De Wever is aiming for an agreement before July, but the political divide remains deep.

The controversy escalated over the weekend when socialist Vooruit leader Conner Rousseau initially refused to clarify whether pension savings would fall under the proposed tax. That ambiguity drew sharp criticism from coalition partners CD&V (Christian democratic) and MR (liberal), who accused Vooruit of targeting the middle class. CD&V’s Sammy Mahdi warned of a “double tax” on pension savers, potentially costing ordinary citizens over 7,000 euros.

On Tuesday, Rousseau clarified that pension savings will be exempt: “We want to protect pension savers, that was always the intention”, he told De Standaard. Still, he remained firm on preventing loopholes, arguing that “the more exceptions, the more the super-rich escape taxation.”

”The more exceptions, the more the super-rich escape taxation”

Vooruit’s hesitation to rule out a pension exemption earlier has left it isolated within the government. MR leader Georges-Louis Bouchez strongly opposed any capital gains tax on pensions and called it a betrayal of the coalition agreement. Yet Vooruit insists that the deal never explicitly excluded pensions. The party accuses its critics of politicising the issue to score points with middle-class voters.

At the heart of the dispute is whether pension savings, which are already taxed through anticipatory levies, should be hit again by a new capital gains tax. Rousseau argues that those with modest pensions will remain under a €10,000 exemption threshold, and says any additional taxation would mainly affect the wealthiest savers.

Despite the recent clarification, no deal is in sight. Bilateral talks continue behind closed doors, with MR in particular showing little urgency. For Vooruit, however, a capital gains tax has been a key demand since the coalition talks. It is also politically linked to another major reform in the coalition deal: the time limitation on unemployment benefits. The two measures are part of a broader package tied to the programme law. This is making a compromise all the more urgent.

^{Vooruit chair Conner Rousseau © BELGA PHOTO JONAS ROOSENS}