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Belgian tax revenues lower than estimated

VAX revenue has been reduced by € 359 million because of the terrorist attacks. L’Echo reported on Tuesday (5 July) that tax revenues are lower than what was estimated in the budget control in April. The deficit is around € 760 million.

“Taking into account the impact of the terrorist threat the figures are quite in line with expectations,” said finance minister Johan Van Overtveldt.

Revenues from the income tax withhold by employers are falling behind by € 305 million, but “this money may be partially recovered,” says Johan Van Overtveldt.

Still the withholding tax exceeds estimates by more than € 200 million. “This is evidence of the recovery in the labor market,” says an official at the office of Van Overtveldt.

For comparison, the deficit in tax revenue amounted to € 1.4 billion during the same period last year. Besides the deficit in tax revenue, there is a deficit of € 229 million in the social security system.

The Brussels Times (Source: Belga)