Belgium is debating a proposal to increase its standard VAT rate from 21% to 22% as part of broader budget reforms. The proposal also includes merging the current 6% and 12% reduced rates into a single 9% rate, expanding 0% VAT coverage to essential goods like fresh produce, medicines, diapers, and public transport. 

The bottom line: The 1% increase would generate substantial revenue for Belgium but will raise prices on goods and services subject to the standard rate. The proposal has triggered political opposition within the ruling coalition, and no implementation date has been set as lawmakers work to balance fiscal needs with social concerns.