VAT on takeaway will not be renegotiated before the summer, according to Georges-Louis Bouchez

The MR president has not shifted his stance on the budget process and categorically opposes any increase in Value Added Tax (VAT). At the next monitoring session scheduled for this month, the accounts will be approved as they stand, in their imperfect state according to him, before restarting "broad negotiations in the summer" where the government will need to find 4 billion euros.

© Georges-Louis Bouchez (MR) / LINKEDIN

"No VAT agreement is needed for March," stated Georges-Louis Bouchez in an interview with the newspaper Le Soir. The report from the Monitoring Committee, which typically outlines the state of the budget, is expected next Monday, March 16. The federal government must therefore meet for its budget review. It is no secret that the executive is exploring new revenue streams to keep the fiscal trajectory on track. This is no small feat: the Prime Minister has already mentioned 4 billion euros in additional savings.

The MR president is using this as a basis for work and an argument to "globalize negotiations" in the summer, as the disagreement with Bart De Wever (N-VA) regarding VAT remains "absolute." The Reformists have issued a categorical refusal regarding any potential tax increase, even through a harmonization of the 6% and 12% rates to 9%. "Creating 400 million euros in additional taxation on consumption is unacceptable," he stated, especially if no reduction in the tax burden on labor income is considered.

"There was never any question of affecting school canteens"

Regarding takeaway meals – the new taxation of which was struck down by the Council of State – Georges-Louis Bouchez is advocating for a French-style formula, which "the Minister of Finance finds complicated." He was keen to clarify that "there was never any question of affecting school canteens or ready-made meals in supermarkets. No, the idea was to target delivered meals – pizza that arrives by van, the Uber or Deliveroo courier arriving by bike..."

Furthermore, while the VAT reduction on non-alcoholic beverages has been abandoned, the MR president is proposing to lower excise duties... on alcohol. He considers the measure necessary to prevent cross-border shopping and to generate revenue in Belgium rather than, for example, in Luxembourg. "Excise duties no longer have a real impact" on alcohol consumers, he claims, applying the same reasoning to tobacco. This position will certainly please the industry, and undoubtedly less so his federal partner in charge of Public Health.

Finally, for the upcoming review deadline in two weeks, Georges-Louis Bouchez's preferred solution is to pass the budget "as it is, with its flaws, and for the rest, an agreement must be reached by the summer."

Yet another budget battle, not won but postponed?

If the postponement of negotiations on this consumption tax shift is confirmed, it will offer a temporary breather for purchasing power in a climate marked by inflationary risks.

Deliveroo and UberEats riders, as well as the restaurants that rely on them, remain in a period of watchful waiting. The emphasis on a specific tax on delivery nonetheless signals the possibility of a new era in the regulation of the digital economy. In a sector already under pressure due to energy and wage costs, stability – at least until the summer – proves to be decisive.

By refusing a hasty arrangement in March, the MR president is imposing agile financial planning on both the "Arizona" coalition and businesses. Belgium is facing a significant shortfall. While VAT is politically untouchable this spring, the summer negotiations risk (re)turning into a veritable pressure cooker. Markets, lobbyists, and coalition partners will be fixated on the discussions.

This dissonance within the federal government revives the fundamental question: should political leaders increase consumption taxes or lighten the burden on labor to stimulate competitiveness?