Natural Gas Excise Duty Increase: CD&V Calls for Postponement Amidst Tax Shift Debate

Belgium’s Christian Democratic and Flemish (CD&V) party is advocating for a postponement of the planned increase in excise duties on natural gas, citing concerns over affordability for households already grappling with rising energy prices. This call for delay comes as Belgium implements a broader tax shift aimed at reducing the burden on electricity while increasing costs for gas, a move intended to accelerate the transition away from fossil fuels.

The Proposed Tax Shift and its Impact

The recent tax shift in Belgium is designed to make electricity more affordable and natural gas more expensive. According to reports, the shift will reduce electricity bills by approximately €42 per year, while simultaneously increasing gas bills by around €78 annually HLN, The Standard. This policy is intended to incentivize a move away from natural gas heating systems towards more sustainable alternatives.

CD&V’s Concerns and Calls for Delay

CD&V argues that increasing excise duties on natural gas at this juncture would place an undue financial burden on households, particularly those reliant on gas for heating. The party is requesting a postponement of the increase, especially if gas prices continue to rise. Other political parties, such as the Reformist Movement (MR) led by Georges-Louis Bouchez, have also voiced support for delaying the excise duty increase CD&V, HBV.

EU Excise Duty Framework

Excise duties on energy products within the European Union are governed by EU legislation, which sets harmonized minimum rates for products used in heating, transport, and electricity generation European Commission. However, individual member states are permitted to set rates above these minimums to align with their national policies. Minimum rates for motor fuels, heating, and electricity are established by the Energy Taxation Directive European Commission.

As of 2026, minimum rates include:

• Leaded petrol: €421 per 1000 litres
• Unleaded petrol: €359 per 1000 litres
• Gas Oil: €330 per 1000 litres
• Electricity: €0.5 – €1.0 per MWh (depending on business or non-business use) European Commission

Denmark’s Approach to Energy Excise Duties

Denmark also applies excise duties to various energy products, including mineral oil, coal, waste heat, electricity, natural gas, and carbon dioxide Business in Denmark. These duties are subject to specific regulations outlined in the Danish Mineral Oil Tax Act. Deductions for energy taxes are also available.

Looking Ahead

The debate surrounding the natural gas excise duty increase highlights the complex challenges facing policymakers as they balance environmental goals with the demand to ensure affordable energy for citizens. The outcome of this discussion will likely influence the pace of the energy transition in Belgium and could set a precedent for other EU member states grappling with similar issues. Ireland is also planning carbon tax increases impacting mineral oil tax, natural gas carbon tax, and solid fuel carbon tax, effective May 1, 2025 Revenue eBrief.