The Federal Cabinet has given the green light to a series of tax reforms on energy bills. This includes the introduction of a cliquet system, so that the VAT reduction to 6 percent can be offset by a higher tax fee once energy prices return to normal.
The government announced months ago that the value-added tax on gas and electricity would be reduced to 6 percent. A preliminary bill by Finance Minister Vincent van Bettieghem (CD&V) putting this reform into practice, got the green light from the Cabinet on Friday.
At the same time, excise duties are also fixed. For natural gas, this relates to an increase in the excise fee of 7.69 euros per megawatt-hour, and for electricity, 33.88 euros will be added in production charges per megawatt-hour. With the cliquet system, the goal is to offset VAT losses through production charges once prices return to normal. Therefore, the increase in the excise tax will be introduced gradually.
A separate arrangement is provided to customers with a social rate, as they are currently exempt from production fees.
The bill now has to go to the State Council for advice.
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