Brussels municipalities looking for money: “A new bill looming for the middle class”

Brussels municipalities want to introduce differentiated surcharges. This would allow them to apply variable amounts of these surcharges according to certain specific circumstances. But it is clear that the Brussels municipalities’ main aim is to patch up their precarious financial situation at the expense of the middle class. The Brussels taxation department is also asking questions about this. “The middle class and businesses must pay for the financial mismanagement of the municipalities,” says Brussels MP Mathias Vanden Borre.

Differentiated surcharges will allow municipalities to take targeted initiatives, such as upgrading certain neighbourhoods, encouraging people to come and live in the city centre or supporting starting entrepreneurs. “In other words, it is not the intention to differentiate on the basis of socio-economic parameters. But the Brussels municipalities do have that in mind,” Vanden Borre points out. “That is not a good idea. And the Brussels taxation department thinks so too.”

Clashes with their own intentions

The Brussels taxation department also fears that the municipalities will use the option of differentiation as a solution to the increasingly difficult financial situation in which they find themselves. The government department did not find any other objectives that were directly related. Moreover, the Brussels taxation department wonders how this increase in municipal revenue can be reconciled with the objectives of the Brussels government, namely, to stimulate the business environment by harmonising and, if possible, reducing regional and municipal business taxes.

Tax increases in 11 of 19 municipalities

“Eleven of the 19 municipalities in the Brussels-Capital Region have increased their taxes this year or plan to do so next year. Evere, Jette and Sint-Lambrechts-Woluwe have already increased property tax surcharges this year. Other municipalities such as Anderlecht, Vorst, Ganshoren, Elsene, Molenbeek, Saint-Gilles, Schaarbeek and Watermaal-Bosvoorde plan to take the same decision next year. Molenbeek also plans an increase in personal income tax surcharges in 2023. The City of Brussels recently increased its office tax by 75%! They are doing that to make up for their deficits,” Vanden Borre warns.

Urban exodus

“I am in favour of the possibility of introducing surcharges on property tax, but then according to the Flemish model, which should be seen as based on a policy of spatial planning and urban development rather than a family policy or a city income policy,” Vanden Borre clarifies. “However, I am afraid that Brussels’ middle class and businesses will fall victim and will have to pay higher surcharges to fill the bottomless municipal pits. The urban exodus will unfortunately only increase as a result,” Mathias Vanden Borre concludes.