The Engagés and the MR propose reducing inheritance taxes, a measure which is sparking debate on its economic impact in Wallonia, where rights can reach 80% between unrelated people.
The political parties Les Engagés and the MR have proposed a radical reform of inheritance taxes in Wallonia. Currently, these rights can reach up to 80% between foreigners, a situation considered unfair by some. The new proposal plans to limit the transmission fee to 5%, a drastic reduction from current rates.
Proposal on inheritance taxes: how will it happen?
Willy Borsus, outgoing vice-president of Wallonia (MR), explains that this measure “will be implemented gradually, starting with the most direct lines, to arrive at a transmission right which will be limited to a rate, for example, of 5%“.
He justifies this reform by emphasizing that current rates are sometimes “completely confiscatory” and that the heritage transmitted is often the result of the work of the families concerned.
“As in many other tax provisions, people, Walloons, French speakers are penalized” says the liberal.
According to Borsus, the faster transmission of wealth to the next generation or even the one after that stimulates investments, creates employment and indirectly generates VAT, thus vitalizing the economy.
For the FGTB, “we give with one hand, we take with the other”
“But where are we going to get the money? There are 800 million euros in the coffers, out of 20 billion in revenue” says Jean-François Tamellini, federal secretary of the FGTB Wallonne, the socialist union.
He criticizes this proposal, arguing that it could result in an increase in indirect taxes, such as VAT on electricity or the costs of medicines.
He fears that reductions in inheritance tax will be offset by increases in other areas, thus penalizing workers. “We give with one hand, we take with the other. These will be the techniques already used and which will be used again” he argues.
Tamellini also denounces that the large Belgian banks, which have made significant profits, are not taxed sufficiently. “We are going to take people’s pockets to bring about your measures which, unfortunately, will not take from where we could do so, the 4 big Belgian banks made 8 billion in profits, 0.04% in parliamentary taxes“, he says.
Response from Committed Members: tax reform
Vanessa Matz, federal deputy for Engagés, refutes the idea that this measure is reserved for the rich. She points out that large assets often find ways to avoid inheritance taxes.
“I don’t understand why people continue to say that this is a right-wing measure. We were repeatedly told about this measure, saying: ‘I may inherit a small house, I will pay full tax. Now, I’m not very rich and that would put a little butter in the spinach’” she explains.
She insists on the importance of a global tax reform to finance this measure without penalizing other sectors. “We were the only ones to put on the table a comprehensive tax reform that holds water and allows us to finance the measures” supports the MP.
Returning to the words of her party president, Maxime Prévot, Vanessa Matz affirms that “all the planned measures must be read through a global tax reform, which obviously makes it possible to generate money to be able to implement these measures. All this was validated by the Planning Office when we submitted our program“.
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