1. Environmental taxation in Belgium Prof. Dr
Environmental taxation in Belgium Prof. Dr. Michel Maus Tax Law Department VUB
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2. Belgium overall statistics (% of GDP)
EU ranking
Environmental taxes 2.4% 2.2% 23
Energy 1.4% 1.3% 27
Transport fuel taxes 1.3% 1.1% 26
Transport (excl. fuel) 0.8% 0.7% 9
Pollution/resources 0.17% % 9

3. Belgium overall statistics (% of GDP)
Conclusion of the European Commission:
Revenues from environmental taxation have declined in percentage of GDP since In 2012 environmental tax revenue amounted to 2.2 % of GDP, below the EU average (2.4 %). Revenues from energy taxation are the second lowest in the EU (1.3 % compared to an EU average of 1.8 % which is remarkably low considering that Belgium has one of the highest tax-to-GDP ratios.
Little political interest in environmental taxation in Belgium?

4. Scope of environmental taxation in Belgium
Direct environmental taxation
Direct link between ecology and taxation
F.i.: energy tax, fuel tax
Indirect environmental taxation
Indirect link between ecology and taxation
Ecological interest as a side effect of taxation
Trying to change public behaviour by means of taxation
Environmental influences in VAT, Income tax etc.
Stimulation of environmental friendly renovation of houses ( lower VAT-rate, tax deduction of renovation costs, … )
Higher tax deduction for low energy cars
Lower taxation for the use of energy friendly company cars

5. Division of tax competences in the Belgian federal structure
There are 3 levels of authority in Belgium
Federal level (Belgium)
Regional level (Flemish region, Walloon region and Brussels region)
Local level (provinces, cities and communities)
Each level of authority has the constitutional power to tax
… but the federal level can limit the tax powers of both the regional and the local levels
Each level of authority can implement environmental taxes
… as far as the specific competence to implement environmental taxes is not limited by federal law

6. Division of tax competences in the Belgian federal structure
Relation between the federal level and the regional level
Federal law 23/01/1989:
Regional prohibition to implement similar taxes as the existing federal (green) taxes
F.i. federal environmental tax on disposable plastic bags and disposable plastic forks, knives and spoons
F.i. federal tax on beverage packaging
Federal prohibition to implement taxes on waste and water
Exclusive regional tax power to tax waste and water
Special federal law 16/01/1989:
Federal level assigns tax powers to the regions
F.i. circulation tax, vehicule registration tax

7. Division of tax competences in the Belgian federal structure
Relation between the federal level and the local level
Income Tax Code
Local prohibition to implement similar taxes as the existing federal income taxes
Relation between the regional level and the local level
Tax Code of assimilated income taxes
Local prohibition to implement similar taxes as the existing regional circulation tax and the vehicule registration tax

8. Environmental taxation in Belgium The federal level
Direct environmental taxation
Tax on beverage packaging
1,41 eur/hectoliter reusable packages – 9,86 eur/hectoliter non-reusable packages
Several exceptions ( federal law 17/06/2013 f.i. alcoholic beverages and coffee)
As from 01/01/2013 abolishment packaging tax for batteries, cartridges, disposable shaving equipment etc.
Tax on disposable plastic bags (3 eur/kg) and disposable plastic forks, knives and spoons (3,6 eur/kg), plastic foil for domestic use (2,7 eur/kg) and aluminium foil for domestic use (4,5 eur/kg )
Fuel tax
Leaded or unleaded fuel and kerosine: 28,6317 eur/1000 liter
Diesel: 14,8736 eur/1000 liter
Cokes: 3,00 eur/ 1000 kg
Energy tax
Electricity: 1,9088 eur/MWH

9. Environmental taxation in Belgium The federal level
Indirect environmental taxation
Income taxes
Personal income tax
Carbon-related taxation of the use of company cars
Increased investment dedecution for ecological investments
13% instead of 3%
Tax deduction for ecological renovation of houses
As from 2013 only for roof isolation (30% - max Euro )
Corporation tax
Carbon-related tax deduction of the costs of company cars (50% - 120%)
VAT
As from 01/04/2014: lower VAT rate for the use of electricity (6% instead of 21%)

10. Environmental taxation in Belgium The regional level
Direct environmental taxation
Flemish region and Walloon region
Taxation on garbage collectors
Taxation on the pollution of water
Indirect environmental taxation
Property tax
Walloon region: lower % property taks for low energy houses

11. Environmental taxation in Belgium The local level
Indirect environmental taxation
Taxation on garbage collection
Taxation on the spread of commercial leaflets