French-speaking liberals set out 2014 tax reform plans

Charles Michel, the president of Belgium's French-speaking conservative-liberal party (MR), has underlined the need to initiate a reform of taxation in Belgium from 2014, writes Tax News’ Ulrika Lomas. With just one year to go before the 2014 elections, MR president Michel put forward the idea of bringing the nominal rate of corporation tax in Belgium in line with the European average. Michel therefore proposed that the corporate tax rate be reduced from 33% currently to 25%. He also advocated that individual income tax be revised, to end existing "employment traps," that gift and inheritance taxes be reduced to end current injustices, and that reduced rates of tax be established to encourage re-investment in the Belgian economy. Highlighting the party's commitment to fiscal consolidation, Michel made clear that a future coalition Government could only embark on a reform of taxation once the country's public finances are in order. Michel emphasised the importance of spending less and more efficiently, and urged Wallonia and Brussels (in whose governments the MR is in opposition) to follow the dederal example. The European Union has also recently lamented Belgium's failure to sufficiently reduce its expenditure. Although the European Commission has elected not to impose a fine on Belgium for missing its deficit reduction targets, it has, however, warned the country to implement structural savings this year of one percent of Belgian gross domestic product, and of a further 0.6% next year.