Brussels (Brussels Morning Newspaper) – Brussels Parliament cut MP pay, raised tourist taxes, and extended gift tax rules to 5 years. Main figures are Mathias Vanden Borre, Jan Busselen, Stijn Bex. The goal is to save €26.5M.
As VRT News reported, the Brussels Parliament has decided to temporarily cut the pay and benefits for its Members of Parliament. This change will begin when the new parliamentary year starts. However, the decision could change because they are still discussing it with other parliaments.
Mathias Vanden Borre, a parliamentarian from the N-VA party, was happy about the decision. He said his party and the federal Arizona coalition pushed for it. He admitted it’s mostly a symbolic step, but necessary because Brussels has significant financial problems.
Stijn Bex, the Green party leader, added that this is part of a larger effort to reduce costs and improve the region’s struggling budget. In addition to reducing MP salaries, the parliament also approved other plans to raise more money.
“After years of pressure from the PVDA (Workers’ Party of Belgium), Brussels parliamentarians are no longer the best paid in the country,”
PVDA MP Jan Busselen proclaims triumphantly.
“This is a first step forward; MPs’ allowances are finally being reduced, and that’s the result of a fight against political privileges that we, the PVDA, have been waging for quite some time.”
How is the Brussels Parliament reforming gift and tourist taxes to fix the budget gaps?
On Thursday, July 11, 2025, the Brussels Parliament approved a key proposal. They extended the time frame for certain gifts from 3 to 5 years. They mentioned that if someone gives a gift and doesn’t register it, it could still be taxed if the giver dies within 5 years. This change brings Brussels in line with tax rules already used in other parts of Belgium.
According to officials, the goal is to encourage people to register their gifts and pay a lower tax now. The idea was first suggested earlier, but wasn’t acted on until recently by other parties. The measure passed even though some parties disagreed or didn’t vote.
The Brussels Parliament is rolling out new financial measures to tackle its budget problems. Officials mentioned that a key part of this involves changing how gifts are treated. This change is already in effect in Wallonia and will be in Flanders soon.
They mentioned that Wallonia’s experience shows this can be effective, with more gifts registered and increased tax revenue. Brussels anticipates generating an additional €4 to €6 million in revenue annually due to this change.
In addition to the gift tax changes, Brussels is also adjusting other financial policies. A new measure increases the tax on tourist accommodations. Hotel stays will now cost €1 more per night, with hotels paying €5 and campsites or Airbnbs paying €4. This was widely supported in Parliament. The government expects this to bring in an extra €4.5 million each year.
A €10 reduction in family allowance benefits will now be permanent for some children. This affects those born before December 1, 2019, who chose a different family benefit system. This change, set to end in 2025, aims to save €26.5 million in 2026. The change won’t affect child poverty and was suggested to keep the child benefit system stable, especially with less federal funding. Children who stayed in the old system are not impacted.
