Excise Taxes on Natural Gas and Heating Oil Rise in Belgium; Electricity Taxes Fall

Starting August 1, 2026, Belgians who heat their homes with natural gas or heating oil will face higher costs due to an increase in excise duties on these fuels. This federal government decision, part of a multi-year budget plan, was initially set for April 1, 2026, but was postponed due to the ongoing energy crisis and resulting price volatility.

The excise duties are a fixed amount levied on consumption, distinct from value-added tax (VAT), which is a percentage of the price. This means that even if energy prices fluctuate, the excise duty remains constant per unit consumed. For example, on 1,000 kilowatt-hours (kWh) of gas, the government levies 10 euros in excise duty and 6% VAT. If the price of 1,000 kWh rises from 100 to 200 euros, the VAT increases from 6 to 12 euros, while the excise duty stays at 10 euros.

While individual household costs will vary based on consumption and insulation, an average family using approximately 17,000 kWh of gas annually can expect to pay around 77 euros more per year starting from 2029. The increase is being implemented gradually, with the full effect realized by 2029. This phased approach allows consumers and the market to adapt to the changing costs.

The decision to increase excise duties on fossil fuels is driven by a binding European Union directive requiring member states to eliminate fiscal advantages for these energy sources. This directive was a response to the energy crisis triggered by Russia's invasion of Ukraine, during which the VAT rate on gas was temporarily reduced from 21% to 6% as a crisis measure. The current increase in excise duties marks a return to a different fiscal policy, aligning with EU environmental and energy goals.