Belgian Finance Minister Jan Jambon has announced a series of measures aimed at making domestic shopping more convenient and reducing the widespread phenomenon of cross-border shopping. More and more citizens, especially in areas near the border, are choosing to go shopping in France, where some products are up to 44% cheaper.
According to data from the Price Observatory, over a third of Belgians cross the border at least every five weeks to buy food and consumer goods, taking advantage of France's price-containment policy and the lower VAT rate compared to the 21% applied in Belgium.
Jambon's strategy focuses specifically on reducing excise duties on various products. "By reducing indirect taxes," he told VRT, "we can not only reduce prices, but also increase overall tax revenue." A point echoed by spokesperson Ilse Coopman: "The price difference between the two sides of the border is clear."
Among the first planned measures are the elimination of excise duties on tea, coffee, and sugar-free drinks, the abolition of the levy on reusable packaging, and a reduction in the tax applied to bottled water and other products.
The plan is part of the federal coalition's efforts to boost domestic trade, which is suffering from the competitive gap with neighboring countries. "Belgium is already the most taxed country in the OECD," Jambon emphasized. "We cannot further burden our citizens. Instead, we can create a win-win situation: more purchasing power and more spending in our stores." The federal government also intends to consider further tax cuts, particularly in sectors like alcohol, which already suffer revenue losses due to cross-border purchases.
