From a higher minimum wage to the introduction of a plane tax: this will change on April 1

Aviation tax comes into effect

The “air travel tax”, otherwise known as the airline tax, will apply from 1 April. For each passenger departing from Belgian territory in an “aircraft” (passenger plane, private plane, helicopter…), the airline has to pay a tax.

The tax is €10 per passenger (from 2 years old) for short trips. These are flights to destinations no more than 500 km away (measured from the airport), as the crow flies. For medium-haul flights, the tax will be 2 euros per passenger, and for long-haul flights 4 euros.

The tax will not apply, for example, to passengers carried, derivative or military flights, or flights arriving at the same airport where they departed.

The minimum wage has risen to more than 1,800 euros in total

The minimum wage is €1806.16 gross per month as of April. This is the result of the social pact made by the G10 trade unions and employers in June last year.

One of the agreements in that agreement was to increase the so-called guaranteed minimum monthly income (GGMMI) at various stages. The first step is for the month of April.

It was initially announced that the minimum wage would be raised to €1,702 per month. But since then it has been indexed so many times that it has practically been increased to 1,806.16 euros. In April 2024 and 2026, a total of 35 euros will be added each time. A fourth increase in the minimum wage is possible in April 2028.

Reduced VAT rate for solar panels, heat pumps and solar boilers

From April, a 6 percent value-added tax rate will always apply to the purchase and installation of solar panels, heat pumps and solar boilers, as well as to new and smaller homes. This was confirmed by Finance Minister Vincent van Bettieghem (CD&V).

The reduced VAT rate is already in place for homes older than 10 years, but it will be extended to homes less than 10 years old through the end of December 2023, including newly built homes and homes rebuilt after demolition.

Also the value-added tax on gas to 6 percent

From April 1, the reduced VAT rate of 6 instead of 21 percent will be temporarily applied to gas. The discount may not appear immediately on invoices submitted, but will be settled later.

The federal government had already introduced a reduction in value-added tax on electricity from March 1. The discount applies to both gas and electricity at least until September 30. The government took this measure because energy prices rose sharply.

The reduction in VAT on electricity will only be visible on energy bills in April. Suppliers needed time to carry out the procedure. The March depreciation discount will then be settled on the final bill, according to the insurance industry association FIBIG.

For gas, it will depend supplier-to-supplier when the discount is settled in advance invoices, says Vibeg. Presumably most suppliers will still charge 21 percent in April, but as of May consumption it should be 6 percent everywhere.

New social rates will also apply from April 1, and are in effect until the end of June. Rates are going up, but lower VAT means the final price including VAT is lower than it was in the previous quarter. For electricity, the new single rate is 22.907 euro cents per kilowatt-hour, instead of 24.236 euro cents per kilowatt-hour. For natural gas, the new social rate is 2.846 euro cents per kWh. It was 2.961 euro cents last quarter.

Solo rides with De Lijn will be a quarter more expensive

The cheapest ticket for a single ride with De Lijn will be 25 percent more expensive from April 1. The m ticket goes from 2 to 2.5 euros.

The Flemish public transport company explains that the fare is equal across different ticket types. Thus, the m-Ticket in the De Lijn app receives the same price as the SMS ticket and the traditional ticket on the card. The cost of the latter two is 2.5 euros, although the operator’s cost will be 0.15 euros added to SMS tickets.

For the rest, ticket prices change only slightly. For example, tickets for 10 excursions – in the application and on the card – will cost 17 euros instead of 16 euros from April 1, and prices for some Omnipas subscriptions for young people aged 25-64 will increase slightly. The rates of social contributions and contributions for young people and the elderly remain unchanged.

Civil servants are seeing a 2 percent pay increase for the second time this year

Public sector wages will rise 2% in April. This is the result of the central index overshoot in February.

In the month following this overrun, benefits and annuities are indexed at 2 percent, in order to adjust as the lifespan increases. Civil servant salaries after a month.

This is the second time this year that civil servant wages have been indexed. This also happened in February, after overtaking the central index in December.

According to the Planning Bureau, it is possible even to exceed a third of the pivotal indicator this year. In its latest forecast, the institution expected that in July. The fact that the central indicator is often exceeded has something to do with sky-high inflation. It rose to 8.04 percent in February, the highest level since March 1983. Inflation is attributed to higher energy prices.

BNP Paribas Fortis offers zero interest on savings over €250,000

From April 1, BNP Paribas Fortis will limit the maximum amount allowed in a regulated savings account to €250,000. Above this amount no interest will be paid.

Concretely, amounts over €250,000 in the savings account will be credited to a deposit account, at 0% interest. BNP Paribas Fortis will also not pay the trust premium for the amount over €250,000 that is transferred to another account. As compensation, monetary compensation is paid. 30% withholding tax must be paid on this.

BNP Paribas Fortis assures that this measure has no effect on more than 99 per cent of clients. Sub-brands Fintro and Hello Bank! implementation of the measure.

BNP Paribas Fortis is the market leader in savings accounts in our country. The bank is not the first to introduce a zero interest rate. ING, for example, did so earlier, as did many smaller wealth banks. ING even has a negative interest rate for amounts over €500,000.