Banks warn against reform of favorable tax regime for savings accounts

N-VA proposes to double the withholding tax on interest from 15 to 30 percent, but also to increase the tax exemption from 1,020 to 2,000 euros. The exemption would also be opened to other capital income, such as dividends. Open VLD wants to exempt all capital income up to 1,800 euros, but wants to keep the 15 percent withholding tax rate for savings accounts.

Febelfin provided advice on the proposals to the members of the Finance Committee on Friday. In it, the banking umbrella organization warns of “unwanted consequences”. The lower withholding tax encourages people to create a larger savings buffer for unexpected expenses and it is an important source of financing for the banks, the federation says. According to the banks, changes can have an impact on lending.