Belgium told by IMF to raise VAT
Belgium has been urged by the International Monetary Fund to raise it VAT rate in order to help fund labour tax cuts, whist Belgium has returned to growth and reduced budget deficits, structural reforms are needed to support growth.
Belgium has already scheduled a cut in the social security levies from 33% to 25% through cuts elsewhere. But the IMF has suggested that a rise in the reduced VAT rate from the current 6% and 12% (on restaurants) or removal of exemptions. Belgium’s standard VAT rate of 21% is currently below the average for the European Union, this is due to the fact they haven’t raised the standard tax since 1996, whereas all its European neighbours have raised theirs.