The Prime Minister, Charles Michel, on Sunday (yesterday) refuted allegations, made by the Flemish Christian Democrats, that corporation tax reform is henceforth coupled with the introduction of capital gains tax. He did, however, qualify that corporation tax and fair taxation are being considered at the same time.
“There is no political couplling as such. This may be the case in the eyes of the Flemish Christian Democrats, but as Prime Minister, I must speak on behalf of four parties,” Mr Michel responded.
At the time, he was being interviewed on the programme “Zevende Dag” (on the channel VRT).
The government had not been able agree on these two matters during the last budget conclave, so they are still on the table.
Mr Michel confirms that he is looking for a method to deal with both of these in the coming weeks.
He added, “We are considering how to decide upon corporation tax reform, which strengthens competitiveness, attractiveness and support to SMEs, and at the same time how to introduce fair taxation.”
He went on, “I think that this depends upon the practical arrangements possible.”
The matter is highly sensitive. Fifteen days ago, the President of the New Flemish Alliance, Bart De Wever asserted that the federal government should have reached agreement by mid-October.
He said this despite his own party not, as the conclave had neared it end, having given up its demands to reduce corporation tax.