The Belgian Parliament's Finance Committee approved the introduction of a capital gains tax on financial assets on Wednesday, in a second reading.
Under the proposed legislation, investors will pay a 10% tax on profits made from the sale of financial products.
There will be exemptions of at least €10,000, which may increase to €15,000 for individuals who avoid withdrawing profits for five consecutive years.
Entrepreneurs holding a significant stake in their own company, defined as at least 20% of shares, will receive an exemption on profits up to €1 million.
The tax will apply retroactively to capital gains made since 1 January, despite the fact the law has yet to pass in plenary. An amendment grants banks until 1 June to start collecting the tax.
The capital gains tax was a key demand from the Vooruit party as a condition for joining the centre-right Arizona coalition last year.
The government describes it as a contribution from society’s “strongest shoulders,” although opposition parties Vlaams Belang and Anders argue that the measure disproportionately impacts the middle class.
Concerns have also been raised about the strength of the legislative framework.
Niels Tas, a Vooruit legislator, welcomed the committee’s decision, calling the tax “historic” and a fair contribution from Belgium’s wealthiest citizens.
The proposal was approved by the parties that make up the governing coalition. Groen abstained, while the opposition Anders and Vlaams Belang parties voted against.
