How the Belgian government wants to fight cross-border shopping

Belgian Finance Minister Jan Jambon wants to make the phenomenon of cross-border shopping less attractive. “By reducing excises, you can increase revenue”, he says.

A win-win situation

The Belgian government wants to make domestic shopping more attractive again, and Jambon wants to work on concrete measures during the upcoming budget talks. There is no room for additional taxes, but there is room for reforms.

“Along the French border there are a lot of people who go shopping just across the border, for example at Auchan. Our excises are so high that products are cheaper there“, Jambon told Belgian broadcaster VRT. By reducing certain taxes, the government can generate additional revenue, he thinks. It would be a win-win situation: people’s purchasing power improves, while the money is spent in domestic stores.

“Lasagna of taxes and excise duties”

The minister wants excises on zero-beverages, tea and coffee to be abolished, as well as a tax on reusable packaging. The packaging tax on water will be reduced, as will the packaging tax on all products that are more expensive in Belgium compared to the neighbouring countries. Other excises are looked at as well, like the sugar tax on all beverages with added sugars and the excises on spirits – but the question is whether support will be found to lower them.

With the announcement, Jambon is responding to questions from the industry. Fevia, the federation of the Belgian food industry, has repeatedly denounced the “lasagna of taxes and duties” that makes Belgian food more expensive. Supermarket chains are also reluctant to see shoppers cross the border.

France has already recently become a less attractive destination for food purchases, due to an increased tax on sugary drinks. The popularity of the Netherlands is also dropping. However, more Belgians are now doing their shopping in Luxembourg and Germany.