Federal Government agrees on measures to soften the blow of the spiraling cost of energy
The Federal Government has reached agreement on a series of measures to address the issue of spiraling energy prices. VAT on gas will be cut from 21% to 6% until the end of September. Those that heat their homes will heating oil will receive an energy cheque worth 200 euro and the duty levied on petrol and diesel will be reduced by 17.5 cents per litre. The temporary extension of the social energy tariff to cover a greater number of Belgian households that was introduced at the start of the coronavirus crisis will be extended until 30 September.
The temporary reduction of the rate of VAT from 21% to 6% that had previously been brought in for electricity will be extended to cover gas. Furthermore, the period during which the temporary VAT rate reduction will be in force has been extended to cover the period up to and including 30 September. The situation will be reassessed in mid-September. Depending on the price of energy then, some of the income lost to the exchequer by reducing VAT on domestic energy may be compensated for by increasing the level of duty levied on gas and electricity through what is described as an “intelligent VAT levy”.
Around one-third of Flemings and 50% of Walloons heat their homes with heating oil. The price of heating oil has risen spectacularly in recent months. To go some way to help compensate for this those that use heating oil to heat their homes will be given an energy cheque worth 200 euro. This comes on top of the heating grant of 100 euro per household that was announced last month.
Petrol and diesel
Duty on petrol and diesel will be cut by 17.5 cent per litre. This will cut the price of filling up a 60-litre fuel tank by 10.5 euro. The measure will be reassessed in mid-June. If petrol/diesel prices fall below 1.7 euro/litre, the level of duty levied will increase again automatically.
No measures were announced regarding CNG or LPG. In any case no duty is levied on either anyway.
Other measures
The extension of the social energy tariff to cover more households will remain in force until the end of September. A reassessment will take place in mid-September.
The price of rail tickets has been frozen. The price increases planned for June won’t go ahead.
The option of laying employees off using the system of temporary unemployment will be extended to cover the period up to and including 30 June for companies whose production is halted or are experiencing supply problems due to the war in Ukraine. Read More...
