Cheraw Chronicle

Complete News World

A favorable tax system for group insurance costs the Treasury billions annually |  consumer

A favorable tax system for group insurance costs the Treasury billions annually | consumer

Granting tax benefits for the second pillar pension – such as group insurance – means an annual reduction from 2.82 to 3.35 billion euros for tax authorities. The Planning Office calculated this at the request of Pensions Minister Karen Laloux (PS). It is working on reforming the pension system.

In order to boost supplemental pensions, they have been tax-averse for many years. The deposit tax is charged in a supplementary annuity product that is lower than the standard savings product.

For the first time, the Planning Bureau calculated how much revenue the tax authorities were losing due to those tax benefits for the second pillar pension. This calculation was made at the request of the Minister of Pensions.

If Pillar II pensions were taxed according to the general tax system, and that had no effect on the total amount of deposits, this would have generated about 3.35 billion additional revenue for the government in 2018: € 2.1 billion for employees, and € 1.26 billion among the self-employed. .

Suppose there was an effect on the behavior of the employers and they would deposit less, the lost income of employees would decrease from 2.1 billion euros to 1.57 billion euros.

The Lalieux Ministry says it’s the first time it’s been clear about the income the country is losing due to the tax benefits of the second pillar. The minister is working on a comprehensive pension reform. More clarity on this should come in September. In the context of this reform, Lalieux wants to make the second pension pillar more social and fair, it seems. However, this will not affect acquired rights, as confirmed by the Council of Ministers.

See also  Cycling stress as spring approaches: Don't forget to check this when you take your e-bike out of the stable