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7 Dec '15

Council of State rules against Flanders’ new energy tax

Summary

Belgium’s Council of State has called for a proposed tax on energy consumption to be withdrawn, as it says that it breaches the Constitution

Double taxation

A tax on energy in Flanders has been rejected by the Council of State, an advisory board on federal judicial matters. The tax, nicknamed the Turteltax after Flemish energy minister Annemie Turtelboom, represents a form of double taxation, which is in breach of the Constitution, the council said.
 

The government planned to introduce the tax on consumption next year, which for most families would come to some €100 per household annually. The aim was to bring down the huge debt the government previously incurred from its green energy premiums, which were massively popular.

The council has now called for the proposal to be withdrawn. Households already pay a federal levy on energy consumption, which means that this would constitute double taxation according to the ruling. That is a breach of the Constitution and also infringes on agreements between the levels of government over who is responsible for what.

“As a result,” the court said, “the subject needs to be thoroughly revised so the taxpayer is not taxed in function of consumption.”

The Council of State is an advisory board, and a minister does not have to take its advice, though they usually do. Turtelboom said that she still plans to introduce the tax. According to tax expert Michel Maus, speaking on VRT radio at the weekend, Turtelboom’s position could lead to a case before the Constitutional Court.

Photo: Ingimage

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Belgian government

Belgium is a federal state made up of three regions and three communities, based on language (Dutch, French and German). The federal level is responsible for issues such as justice, defence, finances and foreign affairs – matters that affect the entire country. Belgium is also a constitutional monarchy.
Regions - The regions are comparable to American states or German Länder. They are geographical entities, responsible for matters related to their territory, such as public works, environment and economy. Belgium’s three regions are the Flemish Region, the Brussels-Capital Region and the Walloon Region.
Communities - Communities are responsible for matters that directly affect residents, such as education, welfare and culture. Belgium’s three communities are the Flemish Community, the French Community and the German Community.
Flanders - Although regions and communities do not overlap exactly, the Flemish Region and the Flemish Community have merged into the Flemish government. Its official language is Dutch. The Flemish Parliament sits in Brussels, which is the official capital city of Flanders (as well as Belgium).
11

population of Belgium in millions of people, with 6.2 million living in Flanders.

6

number of state reforms that have resulted in the federal system as it is today.

4

number of years for which the federal House of Representatives and the Senate are elected.

  • Belgium Federal Portal
  • Government of Flanders
  • Brussels-Capital Region

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