Tax type

Discrepancy

Size of discrepancy

Reasons

Tax Name/ESA Code

Source data for compiling tax revenue by payer

Energy taxes

Excise duties on mineral oil / D2122CC01+D214AC01

detailed tax study for the SUT

Contribution for the surveillance on domestic fuel oil / D2122CC13+D214AC13

detailed tax study for the SUT

Contribution on oil products for heating / D2122CC14+D214AC14

detailed tax study for the SUT

Contribution on energy / D2122CC15+D214AC15

detailed tax study for the SUT

Federal contribution on electricity and natural gas / D214C16P

detailed tax study for the SUT

Contribution for FAPETRO / D214AC28

detailed tax study for the SUT

Contribution for APETRA / D214AC29

detailed tax study for the SUT

Flemish charge on supply points of electricity / D214A

detailed tax study for the SUT

Emission permits / D29FC04

Belgian Greenhouse Gas Registry data on verified emissions and free emission allowances by industry

FED - surtax on transmission price for offshore wind energy / D214AC30

detailed tax study for the SUT

FC - tax via surrendered quotas for green certificates / D214AC31

detailed tax study for the SUT

FC - surtax on distribution prices to finance green certificates / D214AC32

detailed tax study for the SUT

WR - tax via surrendered quotas for green certificates / D214AC33

detailed tax study for the SUT

WR - surtax on transmission prices to finance green certificates / D214AC34

BCR - tax via surrendered quotas for green certificates / D214AC35

detailed tax study for the SUT

Transport taxes

Taxes on traffic / D214DC02

SUT combined with Vehicle Registration Service data

Traffic taxes paid by corporation / D29BC01

vehicle park data

Traffic taxes paid by households / D59BC01

direct from NTL

Euro tax disc / D29BC03

vehicle park data

Taxes equal to excise rights paid by corporations / D29BC04

vehicle park data

Taxes equal to excise rights paid by households / D59DC02

direct from NTL

Additional levy on car insurance premiums / D214GC03

detailed tax study for the SUT

Pollution taxes

Packing contribution / D2122CC16+D214AC26

detailed tax study for the SUT

Environmental charge / D2122CC17+D214AC26

detailed tax study for the SUT

Ecotax / D2122CC18+D214AC27

detailed tax study for the SUT

Tax on waste products / D29FC01

regional tax data

Tax on manure / D29FC02

regional tax data

Taxes on water / D214AC17+D29FC03

detailed tax study for the SUT and regional tax data

Resource taxes

Taxes on water / D29FC03

regional tax data and Eurostat data on annual freshwater abstraction by source and sector and on the water use in the manufacturing industry by activity and supply category

Tax type

Reference years

Method for breaking down revenue to payer

The excise duties on mineral oil are available in the NTL as one value for all the different products on which these excise duties are due. Excise duties on the different mineral oils are of course not identical. For diesel there is even a different rate depending on whether it is used for heating or for transport purposes. The value therefore not only has to be allocated to the industries and households, but also has to be split over the different products on which excise duties have to be paid. This is achieved by first calculating theoretical excise duty payments, on the basis of the use of the different products, an average price of these products[1], and the differentiated tax rates on these products, taking into account the existing tax exemptions. In a second step the payments by the industries and the households are adjusted proportionally to the actual excise duty payments per product, obtained from the FPS Finance.

Part of the excise duties on mineral oil for transport purposes ought to be allocated to non-residents, which fill their tank in Belgium. However, the use of mineral oil for transport purposes is only calculated for Belgian residents.  No information is available on the amount of fuel tanked by foreigners in Belgium. Nor is there any information on the amount of fuel tanked by Belgian residents abroad. As a consequence, excise taxes paid in Belgium by both residents and foreigners, or in other words territorial excise tax payments, are allocated to Belgian residents only.

The contribution for the surveillance on domestic fuel oil is restricted to only one product, namely diesel for heating purposes. A theoretical contribution is calculated on the basis of the use of diesel for heating purposes and the tax rate differentiated according to the user of the diesel. In a second step the payments by the industries and the households are adjusted proportionally to the actual level of the contribution’s total value.

The contribution on oil products for heating is levied on diesel, kerosene and propane for heating purposes. No data is available to allocate the tax to the three different fuel types. Since the use of kerosene and propane for heating purposes is dwarfed by the use of diesel, the allocation is based on the use of the latter only. A theoretical contribution is calculated on the basis of the use of diesel for heating purposes and the tax rate differentiated according to the user of the diesel. In a second step the payments by the industries and the households are adjusted proportionally to the actual level of the contribution’s total value.

The contribution on energy has to be paid on many different energy products. As a consequence, just like for the excise duties, the total value not only has to be allocated to the industries and the households, but also has to be split across the different products. Differentiated tax rates are applied to the use of the products. Theoretical tax payments are calculated. And finally, the payments by the industries and the households are adjusted proportionally to the actual level of the contribution’s total value by product obtained from the FPS Finance.

The federal contribution on electricity and natural gas is split across the two products in the supply table. Since there is no differentiation in the tax rate, the contribution was directly allocated to industries and households on the basis of their use of electricity and natural gas.

The contribution for FAPETRO has to be paid on petrol, diesel and kerosene. As a consequence, the total value not only has to be allocated to the industries and the households, but also has to be split across the different products. Differentiated tax rates are applied to the use of the products. Theoretical tax payments are calculated. And finally, the payments by the industries and the households are adjusted proportionally to the actual level of the contribution’s total value by product obtained from the FPS Finance.

The contribution for APETRA has to be paid on petrol, diesel, kerosene and heavy fuel. As a consequence, the total value not only has to be allocated to the industries and the households, but also has to be split across the different products. Differentiated tax rates are applied to the use of the products. Theoretical tax payments are calculated. And finally, the payments by the industries and the households are adjusted proportionally to the actual level of the contribution’s total value by product obtained from the FPS Finance.

Pending data on the number of customers of electricity per category (residential customers of low voltage, non-residential customers of low voltage, customers of medium voltage and customers of high voltage), the Flemish charge on supply points of electricity is currently allocated to the households and industries on the basis of their use of electricity.

The emission permits have to be bought by enterprises which are considered not to be confronted with foreign competition in order to cover (part of) their emissions of carbon dioxide. We made use of Belgian data on verified emissions and free emission allowances by industry to distribute the NTL total over the industries which have to pay for their emission permits. From 2013 to 2017, NACE 35 was the largest contributor by far, with a share of roughly 80%. This share should fall over time as more and more industries no longer receive free emission permits or receive only a smaller part of their allowances for free.

The federal surtax on transmission price for offshore wind energy is levied on the use of electricity. As a distribution key, we therefore rely on the use table, and distribute the total value among the various users of electricity.

The costs of the electricity suppliers to comply with the quota obligations are largely passed on to electricity users via the electricity bill. They can be found under the heading ‘Renewable Energy Contribution (+CHP)’ and are calculated on the basis of electricity consumption. In 2016, this contribution will amount to approximately 2.65 euro cents/kWh. On 23 September 2017, the Flemish Government decided to increase this contribution (increase of about 4 euro per year). All households and businesses are charged, regardless of whether they are connected to the high-voltage grid (the thirty largest consumers of electricity in Flanders), the medium-voltage grid (most large and medium-sized businesses) or the low-voltage grid (all households and part of the tertiary sector). However, electricity supplies to energy-intensive businesses are often exempted. The total amount is allocated to industries and households on the basis of the use of electricity.

Distribution system operators recover the cost of the guaranteed purchase of certificates at minimum prices by selling them again on the market. The difference between the minimum price and the sales price, is what the operators pass on through the distribution fees. Thereby allocating the total value of the surtax to industries and households on the basis of the use of electricity.

The costs to comply with the obligation to surrender an allocated quota as an electricity supplier will appear on the electricity bill as a contribution to renewable energy. In the Walloon Region, however, there are so many exemptions from this tax that the total value is attributed to the households as a rough estimate.

The costs associated with the task granted to the operator of the high-voltage grid to purchase GC and take them off the market, are passed on through the transmission fees. Because there are many exemptions from this surtax, the total value is attributed to the households as a rough estimate.

The acquisition of GC represents an additional financial burden for suppliers. They will recover the costs of their obligation via their customers. These costs are mentioned on their invoices under 'green energy contribution'. The total amount is allocated to industries and households on the basis of the use of electricity in the use table.

This is a tax which is linked to the purchase of a vehicle. For industries the purchase of a vehicle is an investment, however. This implies that in the use table, all purchases of vehicles by industries are added together in the investment column. The share paid by the households can be derived from the use table, but the allocation to the different industries requires extra data. We used data from the DIV[1] on the registration of vehicles by industries classified according to NACE Rev.2. These taxes on traffic, which are taxes on the entry into service of the vehicles, are very diverse. In order to calculate theoretical tax payments, as is done for the energy taxes, very detailed data on the types of vehicles purchased by the different industries are required. These data are not readily available. The taxes on traffic paid by the industries are therefore distributed over the different industries on the basis of the total number of newly registered vehicles.

This tax is linked to the purchase of car insurance. The total tax is distributed over the buyers of car insurance according to the monetary use tables.

The yearly traffic taxes are not linked to the purchase of a vehicle, as rather to the possession of a vehicle. In order to distribute the traffic taxes paid by corporations, vehicle park[1] data were used. Just like for the taxes on traffic, these traffic taxes are very diverse. Detailed data on the distribution of different types of vehicles is not available. The traffic taxes paid by corporations are therefore distributed across the industries on the basis of the total number of vehicles registered as being owned by the different industries in a particular year.

The traffic taxes paid by households are separately identified in the NTL and can thus be attributed directly to the households.

Payments for the Euro tax disc are distributed over the industries on the basis of vehicle park data with respect to the ownership of trucks. Again, only the total number of trucks is taken into account, due to the fact that the detailed industry data on the different classes of trucks are not readily available.

The taxes equal to excise rights are paid by the owners of diesel cars. Most of the cars owned by Belgian corporations are diesel cars. The taxes equal to excise rights paid by corporations are therefore distributed across the industries on the basis of vehicle park data on the ownership of cars.

The taxes equal to excise rights paid by the households are identified separately in the NTL, and can thus be attributed directly to the households.

The packing contribution has to be paid upon the purchase of beverages in particular types of packing. The distribution across industries and households is achieved on the basis of the use table. The use table contains different types of beverages for which the packing contribution needs to be paid. There is a differentiation in the rate between reusable and non-reusable packing. However, it is impossible to take this into account, since the use table does not include this differentiation. The packing contribution, the total of which is split over the different products in the use table, is distributed over industries and households on the basis of their use of the different beverages.

The environmental charge has to be paid on a set of products for household use, and is entirely allocated to the households.

Ecotax

2008-2021

The ecotax has to be paid on batteries, disposable cameras, and certain types of packing of glue, ink and solvents for professional use. The tax does not have to be paid if certain recycling objectives are met. The income generated by the ecotax is all but negligible. Information from the FPS Finance showed that in the period 2011-2013 on average 96% of the ecotax was paid on batteries.[1] The ecotax was therefore attributed entirely to the households.

Taxes on water (pollution)

Most of the taxes on water are pollution taxes. They have been introduced in order to limit water pollution. The part linked to domestic water use is taxed according to the physical units of water used. This is not the case for the industrial use of water, for which the pollution is directly measured.

Taxes on water are regional taxes. The distribution over the different tax payers starts off with the calculation of the part paid by the households. As a matter of fact, the part of domestic water taxes not paid by the households, but paid by the enterprises was almost nil in 2010-2013, the years for which the detailed tax studies on which the allocations are based, were performed.[1] This part of the water taxes was therefore completely allocated to the households.

Taxes on the industrial use of water are allocated to the individual industries on the basis of their use of water found in the use table.[2]

Tax on waste products (FR and WR)

The Flemish and the Walloon tax on waste products is entirely paid by NACE 38[1].

The tax on manure is entirely allocated to agriculture (NACE 01).

The Walloon tax on household waste is completely allocated to the households.

Taxes on water (resource)

2008-2021

There are only few resource taxes in Belgium. They are part of the taxes on water. These resource taxes are the Flemish groundwater tax, the Flemish charge on water capture and the Walloon tax on water withdrawals.

The sum of the different regional resource taxes can be allocated to the different industries by using water statistics. As these regional taxes apply to water directly extracted from nature, the use tables from the national accounts cannot be used for that purpose because this kind of water is not considered as a product. It is not sold or distributed by water companies. However, the Eurostat data on annual freshwater abstraction by source and sector [env_wat_abs] can be used[1].

The level of detail as concerns the industries which abstract freshwater from the environment in this dataset does not correspond to the NACE Rev.2 A*64-level, however. The industries are only available at a more aggregated level. In what follows, we explain how the data on freshwater abstraction were allocated to the industries at the level required by Regulation 691/2011.

First the water abstraction for public water supply is deducted from the total gross abstraction. The item “Water abstraction for construction and other industrial activities” is allocated to construction only (NACE section F). Furthermore, the item “Water abstraction for production of electricity – cooling” is allocated to NACE section D. Section E - Sewerage, waste collection, treatment and disposal activities; materials recovery; remediation activities and other waste management services is not present in the table of annual freshwater abstraction, but since the amount of freshwater abstracted by this industry is zero or very close to zero for all years between 2008 and 2010 [2], none of the resource tax revenue has been allocated to NACE section E. Finally, the amount not allocated is calculated as the difference between total water abstracted and the sum of all components. Per NACE section the share of the total annual freshwater abstraction is then calculated. For sections B, D, and F no further disaggregation is required.

Other information or assumptions are required for further allocation of the resource tax revenue to the NACE division level. All tax revenue previously calculated for section A – Agriculture, forestry and fishing, is allocated to NACE 01 - Crop and animal production, hunting and related service activities. To allocate the resource tax revenue for section C - Manufacturing to the different divisions, a more disaggregated table is used on the water use in the manufacturing industry by activity and supply category. These data can be found in Eurostat dataset env_wat_ind. This dataset allows calculating the resource tax revenue for NACE divisions 10-12 - Manufacture of food products, beverages and tobacco products, 13-15 - Manufacture of textiles, wearing apparel and leather products, 17 - Manufacture of paper and paper products and 24 - Manufacture of basic metals [3]. For the remaining divisions in section C, we made use of the use of product 36A01 – Abstraction, treatment and distribution of water (in the Belgian monetary use table), in order to allocate the resource tax revenue [4].

As far as the services sections G to U are concerned, the total amount of resource tax revenue paid is allocated to the different divisions in proportion to their use of product 36A01.