The government extends energy measures until the end of this year: lowering the value-added tax rate and increasing compensation

“The war in Ukraine presents us with a lot of uncertainty, for example in terms of the price of the energy bill, we want to provide certainty in times of uncertainty,” de Croo said Saturday night.

That is why the core, which met on Saturday, decided to extend energy support measures until the end of this year. This relates to the social average for two million households, the reduction of value-added tax to 6 percent on electricity and gas and the reduction of fees on fuel. Procedures continued normally until September 30.

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A solution has also been put in place for the co-owners, who have so far been excluded, and the value-added tax on gas will be reduced. A budget of 70 million has been allocated for this. Finance Minister Vincent van Bettieghem (CD&V) added that the reduction in the value-added tax on gas will also apply to residential care centers, hospitals, non-profit organizations and municipal authorities from July 1.

If high prices continue, de Croo said, there is no doubt that these measures will also be extended through the beginning of next year. When preparing the budget, the government will decide to extend the measures in the first quarter of 2023.

1.4 billion in measures

According to the Minister of Economy, Pierre-Yves Dermann (PS), this is about 1.4 billion in measures between now and the end of the year. Derman also announced that the 200-euro check given to households that heated with oil or propane to compensate for higher energy prices would rise to 225.

Energy Minister Tine van der Straiten (Green) noted during the press conference that the measures have a direct impact on the bill, “but we should not forget that accelerating the energy transition and insulating our homes are the best measures” on the structural front. Lower your energy bill.

“The energy you don’t use is the cheapest energy. The reduction in value-added tax for solar panels, heat pumps and solar water heaters will continue until the end of 2023,” she added.