Federal budget – Budget approved but work on company tax will continue
Saturday, 15 October 2016
The Federal government Prime Minister and deputy Prime Ministers approved a budget on Friday evening. They also approved a series of structural reforms, Charles Michel’s cabinet has revealed. However, work on reforming company tax and VAT will continue. They will also continue to look into how to encourage investment in small businesses and new companies.
As planned, the budget is 3.1 billion euros, which is 1.2% of the GDP for 2016 and 2017.
There will be a second wave of structural reforms. Agreements have been reached and bills on job market flexibility have been approved. A bill on the 1996 law on business competitivity, the evolution of salaries and e-trading has also been approved.
The government has committed, as it said it would, to reforming business tax. Work is already well underway. It will also look into propositions on VAT and measures to encourage investment in small businesses. It will study others on digitalization and new businesses.
Employee’s purchasing power and social allocations will be protected. The government will not reform the salary index or tax consummation. The ‘tax shift’, which will increase take home salaries and reduce business charges, has also been ‘consolidated’.