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Unformatted text preview: d 0.1% of GDP between 2002 and 2005, under the surveillance of the Conseil Supérieur des
Finances, and apportions this obligation among them (see Bulletin de Documentation du Ministère des Finances de Belgique, 61st year, No. 2, pages
It should be noted that the latter apportionment method centred on the principle of the taxpayer’s place of residence; only later was the sore point
raised of the apportionment according to the principle of the source – Charles, Deschamps and Weickmans, (1998), Gérard (1999) –, especially
favourable to the Brussels-Capital Region since many people who work in Brussels do not reside there. Commission on Fiscal Imbalance The permanent phase, starting in 2000, calls for the allocation of the shared portion of personal income tax based on the
regional yield of the tax and the increase in the amount at the same pace as inflation and growth in GNP. The national
solidarity measure is now in effect and the Regions are no longer bound to lend money to the federal government. 4.1.2. Inter-Region equalization:19 the national solidarity measure Since 1990, a Region whose per-capita revenues from personal income tax are lower than the national average receives
each year a 468-BEF (11.6 €) indexed transfer per inhabitant per year per percentage point difference between such
revenues and the national average. In other words, the shift from a breakdown that favoured the Walloon Region to a
breakdown favourable to the Flemish Region described earlier has been offset by the national solidarity measure, the
Belgian version of inter-Region equalization. This has led to a transfer in favour of the Walloon Region that reached
20 billion BEF (0.5 billion €) in 1993 and also, since 1997, to a transfer in favour of the Brussels-Capital Region on the
order of 600 million BEF (14.9 million €).
That the Brussels Region – as usual in Belgium we use the terms Brussels Region and Brussels-Capital Region without
distinction – benefits from equalization illustrates a trend-setting development that cannot be overlooked since it
illustrates a ground swell in respect of the characterization of the Regions of Belgium. In the mid-1960s, for a mean
taxable income of 100 in Belgium as a whole, the figure for Flanders was 93, for Wallonia, 97, and Brussels, 138. Three
years later, in 1969, the figure stood at 96 for Flanders and Wallonia and 129 for Brussels. In 1979, Flanders stood at
the national mean, Wallonia below the mean at 96, and Brussels above the mean at 110. In 1991, Flanders caught up to
Brussels, both of which stood at 101, leaving Wallonia at 95. Since 1993, Brussels and Wallonia have been below the
national mean in terms of mean taxable income and, since 1997, the latter has also benefited from equalization. 4.1.3. The fiscal autonomy of the Regions: own-source revenues The Regions have at their disposal own-source tax and non-tax revenues. Non-tax own-source revenues include,
among other things, hunting and fishing fees and forestry operation fees.
The Regions’ own-source tax revenues stem from:
♦ formerly federal t...
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