Ten measures for a fairer tax system and a decrease in labour costs

The federal government has approved the bill for the Programme Law. This also includes ten measures for a fairer tax system. “This first Tax shift There is a tax shift when a new tax is implemented or an existing tax is increased in order to reduce or get rid of another tax. The N-VA is a proponent of a shift of the burden on labour to that on consumption or environmental pollution, for example, but not of a tax that increases the total burden of taxation. tax shift represents a costs shift of about two billion euros in favour of companies and citizens,” Minister of Finance Johan Van Overtveldt (N-VA) explains. “The results will be noticeable immediately through a decrease in wage costs and personal income tax.”

To finance this reduction in costs, several measures were developed that should simultaneously lead to a fairer tax system. For example, there will be a contribution from the financial sector. Starting this year, this bank tax will structurally bring in 100 million euros. By introducing the diamond system, the government creates a workable and controllable tax instrument that will result in a substantially higher contribution from the diamond sector. This sales tax will generate an extra 50 million euros annually: 250 percent more than the current contribution. Finally, the government also tackles tax evasion by means of legal structures abroad with the Transparency tax Also known as the “Cayman tax”, after the Cayman Islands, one of the largest tax havens in the world. A transparency tax allows the tax authorities to look through complex financial structures abroad and to tax the assets in these in their country, if the assets were only parked there in order to avoid taxation. transparency tax , or “Cayman tax”.