Food shopping is notoriously expensive in Belgium, and for many years, savvy shoppers have popped across the border to do their buy their groceries and household essentials in France, the Netherlands or Germany.
According to the latest statistics from the Belgian Food Industry Federation, in 2023, more than one in three Belgians went across the border to a neighbouring country to do their shopping every five weeks.
It certainly pays to shop around. A study by Gondola Academy and Daltix in 2023 found that, on average, groceries and dry goods were up to 44% less expensive in France than in Belgium.
The reason for the large price gaps between Belgian and French products is down to key factors: inflation and taxes. Unlike in Belgium, France takes a much more interventionist approach to ensure relatively low food prices.
In Belgium, meanwhile, the state taxes groceries at a much higher rate. The standard VAT rate in Belgium is 21%, which applies to most goods and services.
Cheaper groceries on the way?
The Belgian government is concerned about the impact of cross-border shopping on the Belgian exchequer.
In a recent interview with VRT, Belgian Finance Minister Jan Jambon made his views clear on the subject.
"Along the French border, there are many people who shop just across the border, for example at Auchan," he told the broadcaster. "The excise duties are so high here that the products are cheaper there. By reducing excises, you can increase revenue."
Under the coalition agreement, excise duties on certain grocery items – including team, coffee and zero-calorie drinks – will be cut.
But according to VRT, the federal government wants to go further to discourage cross-border shopping and is investigating which other excise duties can be reduced with this aim in mind.
During the federal government’s budget talks, discussions on alcohol excise duties and the sugar tax will reportedly be on the table.
