Abolition of unemployment tax relief to cause €200 monthly loss

Abolition of unemployment tax relief to cause €200 monthly loss
Minister of Finance Jan Jambon. Credit: Belga/Dirk Waem

Starting next year, the tax reduction for unemployment benefits will be eliminated, resulting in a monthly loss of €200 for unemployed individuals.

Wesley De Visscher, the chief of staff for Finance Minister Jan Jambon (N-VA), revealed this change during a paid lecture about the government’s fiscal plans at Bruges' SBM on Monday evening.

Following criticism in parliament, Jambon’s office released audio recordings of the event on Tuesday night. According to opposition parties Open VLD and Groen, these recordings confirm that De Visscher shared information not yet disclosed by the minister in parliament, including details about the reform of the DBI deduction and the carried interest regime for fund managers.

De Visscher made another striking comment in Bruges, stating that "nothing has been published" about the abolition of the tax reduction for unemployment benefits. He suggested that "nobody really understands this, especially journalists," adding that next year, the benefit will be reduced by €200 per month.

He emphasized the seriousness of the impact, expressing concerns about public awareness of the impending changes. According to De Visscher, the removal will generate €370 million for the treasury, though some of the revenue will be allocated to regional governments.

This abolition is part of the coalition agreement under the section "rewarding work," but until now, details of the reform had not been disclosed.

Open VLD MP Vincent Van Quickenborne had previously asked Jambon in parliament on 25 February about its impact on the unemployed but did not receive a response at that time.

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