Belgian Workers Party falsely accuses Colruyt of paying 'next to nothing' in tax

Belgian Workers Party falsely accuses Colruyt of paying 'next to nothing' in tax
Belgium Worker's Party (PTB-PVDA) leader Raoul Hedebouw at the party's New Year reception on Sunday 14 January. Credit: Belga / James Arthur

The Workers' Party of Belgium (PTB-PVDA) has kicked off its election campaign with a faux-pas, incorrectly stating that supermarket group Colruyt pays just 0.27% in tax.

Party leader Raoul Hedebouw’s comments on the Belgian company were part of a wider attack on the federal tax system at the party's New Year reception on Sunday.

Colruyt swiftly corrected Hedebouw’s claims, stating on Monday that it pays corporation tax in all the countries it operates in, including Belgium. This amounted to €62.2 million in the 2022-2023 financial year – 24.8% of a profit of €250.9 million.

In the same period, it paid an additional €974.5 million to the Belgian Treasury. The company also prides itself on creating "sustainable jobs" and promoting "dignified work". It currently employs 33,384 people, including 28,332 in Belgium.

'Tax the rich'

Hedebouw's speech marked the beginning of an election campaign centred on tackling the cost-of-living crisis and a swell of support in the polls. The 46-year-old's fiery address emphasised his party's commitment to reducing VAT rates on essential products as well as its determination to convert public support into votes in the federal elections in June.

"How is it that a cleaning lady now pays more tax than a multinational?" He implored. "Colruyt is far from being the only multinational to pay almost no tax. The problem is structural: our country is a tax haven for multinationals and multimillionaires, but a tax hell for workers."

PTB's official tax plan is named "Tax the Rich" and calls for a 1% tax on Belgians' assets worth more than €1 million, 2% above €2 million, and 3% on those worth more than €3 million. The party claims that this "millionaire tax" would raise €8 billion in public funds.

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