Work pays: Parliament approves major tax reform

“People who work should clearly be better off because of it.” With that objective in mind, Parliament has approved the tax reform put forward by Prime Minister Bart De Wever’s government. Following the pension reform and the decision to limit unemployment benefits in time, this marks the N-VA’s third major structural reform to become government policy. “This personal income tax reform will reduce the tax burden on labour and make work more rewarding,” says Finance Minister Jan Jambon.

Lower taxes on work

The reform cuts taxes for working people, allowing them to keep more of what they earn. It also widens the gap between working and not working, strengthening the financial incentive to take up a job. At the same time, the tax system will become more neutral and better aligned with today’s reality of smaller households and single-person households.

“This reform makes work more rewarding. After the landmark pension reform, this is the second far-reaching reform within my portfolio that we have delivered in less than a year and a half,” says Jan Jambon.

Additional support for low- and middle-income earners

The reform also introduces a range of measures designed to make work more attractive, with a particular focus on people on low and middle incomes.