‘No New Tax’ Ordinance Sparks Debate in Brussels Region
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By Emma Walker, Senior Editor
A recent ordinance concerning taxes on public domain goods in Brussels has ignited a notable debate, with several municipalities challenging the region’s interpretation of its tax policies. The core of the dispute lies in whether the ordinance introduces new taxes or merely clarifies existing legislation.
The region, thru its spokesperson Seraz Rafi, asserts that the ordinance is a legal clarification aimed at ensuring certainty and does not impose any new taxes. “There is no question of extra taxes,” Rafi stated. “The ordinance of December 2024 thus does not change the tax policy that the region has been pursuing as the 1990s.” the region’s stance is that it has always had the authority to levy taxes, with provisions for express exceptions, which continue to be honored. Budget Minister Sven Gatz, a colleague of co-entering councilor Imane Belguenani, emphasized that the ordinance clarifies legislation dating back to 1992, addressing ambiguities in the existing Codex.
Though, nine mayors from various municipalities, including Oudergem, Schaerbeek, Sint-Pieters-Woluwe, Sint-Gillis, Evere, Sint-Lambrechts-Woluwe, Ixelles, Uccle, and Koekelberg, remain unconvinced.They plan to challenge the ordinance before the Constitutional Court. Benoît Cerexhe, mayor of Sint-Pieters-woluwe, estimates that the potential tax increase could reach €600,000 annually per municipality, a figure the Gatz cabinet disputes. The opposition also stems from a perceived lack of consultation. Brussels Member of Parliament Zakia Khattabi has proposed rescinding the ordinance, citing a “unilateral démarche” by the region and the absence of parliamentary debate on the ordinance’s scope, consequences, and legal implications.
The matter is scheduled for further discussion in the Brussels parliament after the summer recess. A potential agreement could avert a legal confrontation between the municipalities and the region.
Evergreen Insights: Brussels Tax Ordinance
The debate over the ‘no new tax’ ordinance in Brussels highlights a recurring tension between regional and municipal authorities regarding fiscal powers and the interpretation of tax laws. Historically, regions in Belgium have the authority to levy taxes, but specific exemptions and agreements with municipalities have frequently enough been in place. The current situation appears to be a re-evaluation or clarification of these long-standing tax frameworks, potentially driven by evolving fiscal needs or a desire for greater uniformity. The lack of prior consultation, as raised by critics, is a common point of contention in administrative law, often leading to legal challenges and calls for greater clarity in governance.
Frequently Asked Questions About the Brussels Tax Ordinance
- Is the Brussels region imposing new taxes on municipalities?
- The region states that the ordinance is a legal clarification and does not impose new taxes, but rather clarifies existing tax policies.
- Which municipalities are challenging the ordinance?
- Nine municipalities, including Oudergem, Schaerbeek, Sint-Pieters-Woluwe, Sint-Gillis, Evere, Sint-Lambrechts-Woluwe, Ixelles, Uccle, and Koekelberg, are challenging the ordinance.
- What is the basis for the municipalities’ opposition?
- The municipalities argue that the ordinance could lead to significant tax increases and that it was adopted without adequate consultation or parliamentary debate.
- What is the region’s justification for the ordinance?
- The region maintains that the ordinance provides legal certainty and clarifies legislation that has been in place since 1992, without altering the established tax policy.
- What are the potential financial implications for municipalities?
- One mayor estimates potential annual tax increases of up to €600,000 per municipality, though the region disputes this figure.
- What is the next step in the process?
- The case will be discussed in the Brussels Parliament after the summer recess, with the possibility of avoiding a legal clash if an agreement is reached.
This article provides general data and does not constitute financial or legal advice.Consult with qualified professionals for advice tailored to your specific situation.
