Editorial by Managing Director Alexander De Beir
A sense of urgency for tax reform in Belgium
For some time now, a sense of urgency has been present in political circles: a thorough, viable, and well-considered tax reform is more necessary than ever in our country. Given the turbulent economic and geopolitical times in which we live, this need becomes even more pressing.
Undoubtedly, there will be a tendency—at least among some—to place the heaviest burdens on the strongest shoulders. I am an entrepreneur, employer, and founder/manager of my company. Additionally, I act as an intermediary connecting multinationals and SMEs with freelance interim managers. From this perspective, I firmly advocate for a reform that stimulates the business world and its risk-takers.
Let us not lose sight of a straightforward economic reality. The better businesses perform, the more jobs they can create. This will be crucial to maintaining the economic health of our country. Both production and consumption must remain at a robust level.
Five key principles to foster entrepreneurship
In recent years, much emphasis has been placed on administrative simplification, including for startups and self-employed professionals. At least, that was the intention. However, paradoxically, further digitalization has led to increased administrative burdens. It is therefore entirely appropriate that the Federation of Enterprises in Belgium (FEB) is now calling for a reduction in these burdens: FEB proposals for reducing administrative burdens.
Digitalization should go hand-in-hand with simplicity. The simpler and clearer fiscal responsibilities are, the more entrepreneurs will be encouraged to pursue their ventures.
Simplicity here must also mean comprehensibility. In other words, entrepreneurs, business leaders, and freelance professionals should be offered the necessary legal certainty to know that they are “on the right track.”
If the new government can deliver a fiscal reform plan for the next legislative period—one robust enough to last the next five years and ideally one that embraces a long-term vision spanning decades—entrepreneurship will naturally be encouraged. By providing (future) entrepreneurs with a predictable (fiscal) framework, they will understand the rules of the game from the outset.
A healthy fiscal framework must also be underpinned by a general sense of fairness on three levels:
- Fair distribution among economic actors: The burden must be shared responsibly to ensure balance across all sectors.
- Healthy relationship with the government: Entrepreneurs should not feel they are victims of opportunistic measures that provide only short-term fixes.
- Competitive positioning internationally: Belgium must ensure its tax system does not disadvantage it in global markets, especially as it relies heavily on international trade. Neighboring countries and others with more favorable tax environments must not be allowed to outcompete us.
Looking ahead
Let us hope that the coalition partners of the next government demonstrate both courage and common sense in making the necessary decisions to safeguard our prosperity. This will ensure Belgium remains an attractive region for foreign investment while enabling our local SMEs to grow and perhaps even evolve into global multinationals commanding international respect.
