Raise taxes on energy, advises IMF

The current tax rate for energy consumption in Belgium is far too low, according to the International Monetary Fund (IMF). According to an IMF report on energy subsidies, Belgian residents annually pay €838.96 per capita too little for energy, writes De Standaard. The value-added-tax (VAT) on energy consumption should therefore be raised, says the IMF.

The IMF examined how high energy prices would be if all the costs, including those for air pollution and climate damage were included, and concluded that tax rates for energy worldwide are too low. In Belgium, there is extra margin for a tax hike, says the IMF, as the annual deficit of €838.96 is higher than in neighbouring countries, including France (€432), Germany (€631) and the Netherlands (€549).

The IMF is in favour of raising the VAT on energy to 21%, despite its being reduced to 6% under the previous government.