Overtime tax-exemption proposal proves divisive

Last week’s suggestion by the secretary of state for public service, Hendrik Bogaert, that overtime be exempt from tax, has proved highly divisive among Belgian politicians. To some, the measure would provide more flexibility for businesses and workers, and encourage them to be worked more hours, especially SMEs which often have to work with reduced staff. The measure would be beneficial in times of peak production. It would give workers more purchasing power, which is good for the economy.

Those opposed to the scheme, however, say that making overtime exempt from tax does not encourage employers to hire new people. Furthermore, it would cause a loss of income to the state, and would have repercussions on the budget.

Where do you stand? We want to know. Vote in our Bulletin poll dedicated to whether overtime should be exempt from tax ( you have to be logged in to participate).