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The government is increasing excise duties on tobacco, making an average pack of cigarettes 25 cents more expensive. That is what Prime Minister Alexander De Croo said in the House. The proceeds will be used for a tax cut for the middle class, he emphasizes.
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jvhSource: BELGIAN
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In the budget for 2022 that the government knocked on Tuesday, a surplus from tobacco excise duties of 120 million euros is foreseen, according to the budget tables. That money comes from an increase in the excise tax on tobacco, causing the price of a pack of cigarettes to rise by 25 cents, Prime Minister Alexander De Croo clarified on Wednesday during the parliamentary debate on the government statement.
The surplus proceeds will be used for a tax shift to spare the middle class, the prime minister emphasized. For example, the gradual phasing out of the special social security contribution is being financed, it said. “We’re raising taxes on something that’s unhealthy and the benefits go to people who work and people who progress. That is good for that group and good for our social security, because people who work make our social security stronger.”
There will also be an excise tax on electronic cigarettes, De Croo said. A European directive that allows this is expected next year or at the latest in 2023, after which the government wants to make use of the option, it sounded. “Today that is an anomaly. The way e-cigarettes are taxed is not related to their impact on health.”
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