Belgium coalition tax reform faces split over wealth‑tax proposal

Belgium’s federal coalition is drafting a tax reform to address a budget deficit of at least €7 billion. While the government promises to lower the tax burden on labour and increase the tax‑free allowance, many workers are already seeing reductions in their net pay due to interim fiscal adjustments.

Within the coalition, parties are divided over introducing a wealth tax to raise new revenue. Les Engagés proposes a tiered levy of 0.15‑0.60 % on assets above €500,000, potentially generating €2 billion a year. Vooruit backs a flat 0.3 % charge on financial assets over €1 million, expected to bring in about €1 billion annually. The proposal faces strong opposition from the N‑VA, MR and CD&V parties. Despite political resistance, public opinion is broadly supportive, with 76 % of Belgians backing a tax on the wealthiest citizens, according to an Ipsos survey. A supervisory‑committee report due on 6 July is expected to clarify the government’s fiscal path, as Belgium aims to find roughly €10 billion in savings to stabilise its finances.