Earlier, Prime Minister De Croo said that the same reform must be budget-neutral at all costs, that is: it must not further burden the state’s finances and budget. A myth, Peersman thinks. “In the short term, permanent VAT reduction and excise reform are unfunded and not budget-neutral,” says Peersman. “Even in the long run, I don’t think the VAT cuts will be budget neutral. If I understand the scenario correctly, the price of energy will rise less due to excise duties than it will fall due to tax cuts. ‘VAT”.
Spending will then still exceed the revenue from the reformed excise duties, Peersman predicts. Between the lines, Prime Minister De Croo also shows that “we will proceed step by step, but we will not suddenly increase tariffs if prices remain so high”. He just lets it be “material error” which Prime Minister De Croo attributed to former Secretary of State De Bleeker.
