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Belgium domestic energy VAT cut to 6% proposition

42% rise in energy inflation in 2021 prompts VAT cut plan

Belgium is considering a temporary cut in domestic energy Value Added Tax rate from the standard rate of 21% to 6%.  The headline Belgian inflation rate in December 2021 hit 6.5%, with energy inflation many times higher due to global gas shortages and economic recovery after the worst effects of the COVID-19 pandemic.

EU states reform VAT rate freedoms for economic crisis

In December 2021, EU finance minister agreed new reduced EU VAT rate setting freedoms which should come into place before April 2022.

The Finance Ministry is planning to put forward the measure to the Federal government to help combat inflation spike. Many other EU states cutting VAT on fuel. Belgium has in the past cut the VAT rate to 6% on energy fuel.

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