Feedback Form

General cuts

Until recently, placing new double-glazed windows was tax deductible as part of a large packet of “energy saving investments”, which also included water heaters and solar panels. Tax deductions have been a part of the federal housing policy since the Second World War. It has made Belgium one of the countries with the highest percentage of home ownership – a recipe against poverty and a motor for the building trade. The energy-saving measures of recent years had other goals, too: making our economy greener and stimulating the renovation of our aging housing.

So far so good … until the money ran out. Scrapping tax deductions for most energy-saving investments was one of the first acts of the new federal government under Elio Di Rupo. As if to make sure that there is no doubt about the government’s intent to cut spending, the measure went into effect the day it was announced: 28 November.

The retroactive repeal of tax deductions is just one of the measures the federal parliament debates this week. The end of the year is usually a busy period for MPs, voting an annual bill with “general provisions”. Often these provisions are technical matters grouped in together – the bill is therefore known as “rubbish bin law” – but this year, with a new government just installed and a financial crisis on our hands, it includes many cuts.

A 15% reduction on the price of “green” cars is scrapped. Company cars will be taxed higher, as will certain savings products, digital TV, licence plates, tobacco and official acts by notaries. There are new rules for service cheques, with which household jobs can be purchased; for career sabbaticals; for early retirement and for unemployment benefits for those fresh out of school.

The government wants to get its retirement reform voted by the end of the year, as well. After more than a year of doing very little but awaiting the new government, MPs now have plenty of work on their hands. As do the double-glazing salesmen, with their creative bookkeeping techniques.

(December 21, 2011)