Belgium agrees budget with tax on energy companies, ministers' salary cuts (updated)

Fluxys Belgium SA

11/10/2022 17:22

(Adds quotes from prime minister, details)
    By Marine Strauss and Charlotte Van Campenhout
       BRUSSELS, Oct 11 (Reuters) - Belgium's federal
government reached a deal on the annual national budget on
Tuesday, including cuts to ministers' salaries, measures to
support families and companies and a tax on the profits of
energy companies such as Engie  ENGIE.PA  and TotalEnergies
 TTEF.PA .
    Belgian Prime Minister Alexander De Croo also said the
government decided to extend the lifespan of the youngest
nuclear power plants with the country looking to increase its
energy capacity.
    "Just as we did during the COVID crisis, we will not abandon
anyone, to do nothing today would be a form of guilty
negligence," De Croo told Belgian lawmakers.
    "When the skies have cleared and the storm has died down,
the house should be in order again ... With a net effort of 0.6%
of the GDP, or 3.6 billion euros, that will bring the federal
government to a structural deficit of 3.2% of GDP in 2024," he
said.
    The tax on profits made by energy companies over 180 euros
per MW/h should bring in 3.1 billion euros ($3.01 billion) from
January until June 2023, in line with EU recommendations.
    Belgium already earns around 800 million euros ($804
million) from a nuclear tax that it will extend to fossil fuels
companies and electricity producers.
    The nation of 11 million is a natural gas hub, with around
10% of total Russian LNG (liquefied natural gas) exports using
trans-shipment services at the port of Zeebrugge. In cold
weather, underground gas storage capacity of 9 TWh is also
available at Loenhout, near Antwerp.
    Belgian ministers will see their own salaries trimmed by
eight percent in the upcoming budget year, and a temporary tax
of 15% for multinationals with a profit of more than 1 million
euros will also be introduced.
    The government will seek to decrease the price of healthy
food and making unhealthy products more expensive, with no VAT
on fruits and vegetables from 2023 and excise taxes on tobacco
and vapes increased.
    And with Russia's invasion of Ukraine, the government will
make proposals to grow the defence budget to 2% of GDP in 2035
and will not reintroduce general conscription.
($1 = 1.0297 euros)
 (Reporting by Charlotte Van Campenhout, Marine Strauss, Editing
by William Maclean and David Evans)
 ((Charlotte.VanCampenhout@thomsonreuters.com;))