A proposal to merge Belgium's reduced VAT rates of 6% and 12% into a single 9% rate could lead to higher prices for a range of everyday goods and services, according to RTL Info.
The idea, which has resurfaced in political discussions in recent months, aims to simplify Belgium's VAT system by replacing the two reduced rates with a single intermediate rate. Supporters argue that the change would make the tax system easier to administer and reduce the risk of errors for businesses.
Impacts on consumers’ wallet
Currently, Belgium applies four VAT rates: 0%, 6%, 12% and the standard 21%. The 6% rate covers many essential goods and services, including food products such as bread, vegetables, meat and dairy products, as well as medicines, books, museum tickets and certain cultural and sporting activities.
Under a unified 9% rate, these products and services would become subject to higher taxation, a change that would likely be reflected in retail prices. The measure could disproportionately affect lower-income households and middle-class families, which spend a larger share of their income on basic necessities.
The proposal could also make renovation projects more expensive. Many home renovation works currently benefit from the reduced 6% VAT rate, partly to encourage energy-efficiency improvements. Raising the rate to 9% would increase the cost of such investments.
Cheaper products and services
While products and services currently taxed at 12% would become cheaper under the proposed system, observers note that these categories are generally less frequently purchased than everyday essentials. As a result, any savings generated by lower VAT on those goods would be unlikely to offset the higher costs faced by consumers elsewhere.
