Flemish budget minister Bart Tommelein is ecstatic: "This is a win-win-win situation for citizens, our economy and the government." Mr Tommelein is planning a similar reform of inheritance tax.
The reform of gifting taxation made gifting easier and cut tax levels. In the past gifts usually involved children and grandchildren because gifting to more distant relatives incurred higher tax levels of up to 80%. Tax levels and the number of tax categories have all been reduced. More and more gifts are now being made to siblings.
Similar reforms have also taken place in Brussels and Wallonia that are responsible for such matters for their citizens. Minister Tommelein says citizens benefit because they pay less tax on gifts and the whole process has been made easier. Children and grandchildren benefit financially and the economy benefits too because capital that wasn't doing all that much is activated. The reform has also significantly increased tax revenue.