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Belgian minister reopens discussion about company cars
During a VRT talk show on Sunday morning, deputy prime minister Alexander De Croo (pictured) reopened the discussion about company cars, and called for a revision of the system. We can do something about the tax benefit on company cars, but first there needs to be an increase in net income, he said.
During the talk show De Croo was answering questions about climate targets, when the conversation suddenly turned to company cars, which are under a lot of fire in Belgium for their contribution to traffic and pollution.
To the question of whether Belgian employers should pay their employees in money rather than cars, De Croo answered, “Of course.” He then brought up the federal government's ambition to increase workers' take-home pay. "If we continue to work towards paying people more, then it seems only logical that we do it with more money and fewer cars."
De Croo added that it must happen in that order: "First give people more net pay, and then change the system."
Comments
I agree, there first needs to be an alternative for both employer and employee. By all means stop the cars and give the employees the money instead. But that won't happen, will it? Ah no, it will be a net tax increase. "Changes" to the tax system in Belgium always are. Particularly as those with cars are probably already higher than average earners and no matter they already pay their share and more. Oh, and while we are at it, we can also do something about this ridiculous luncheon voucher business. How about paying the employee with money and removing several layers of costs?
The real issue is NOT about cars or lunch vouchers but the fact that Belgian tax system is taxing us for creating Value (both employees and companies are taxed on incomes) while it should be on destruction of Value : a sort of VAT paid by any one who buys any good wether being for personal use or for business. Ths more CO2 foot-print the product/service involves the higher this VAT should be ! But our politicians only know what our Managers know : cutting costs and taxing on Value creation, the old way of doing business !
Pierre Lambert
Ok, my appreciation of a car benefit I have now is around 1000 euro net (lease, insurance, fuel) and with now stricter CO2 for company cars mine is around 110 g/I'm. So you give me 1000 net, what I'll do? Likely will buy cheaper, dirtier second hand car and leave 500 net for more interesting expenses. Will it decrease congestion? No. Will it reduce polution? No. How many people will do like this'll? Probably a lot.
If you want to get rid of company cars, stop using congestion and polution as excuses! Are they much better in other capitals where company cars do not exist to the same extent? Paris, London, Rome, etc.