Unformatted text preview: nce. Some 80% of the fees on radios and
television in Brussels are refunded to the French Community and 20%, to the Flemish Community. It should be noted
that the special law respecting financing of July 16, 1993 made this tax, until then a shared federal tax, a Community tax:
the fee is fully refunded to the Communities.
The link with personal income tax revenues closely resembles the situation with respect to the financing of the Regions,
i.e. initially 47.7 billion BEF (1.18 billion €) and 37.7 billion BEF (0.93 billion €) respectively, for the Flemish Community
and the French Community. It should be noted that the link with growth in GNP is accompanied by a guaranteed result
by 2005 (based on 2% in annual growth for the period 1993-2004 (see Spinoy (1998) for more details)). 186 Commission on Fiscal Imbalance The transfer related to the VAT originally amounted to 167.4 billion BEF (4.15 billion €) for the Flemish Community and
129 billion BEF (3.20 billion €) for the French Community. These amounts are indexed and thus reflect inflation but not
growth in real terms, including after the end of the transitional period, and are adapted according to the number of
inhabitants under the age of 18, which, in practice, gives a regressive character to financing since this proportion is
diminishing. The Conseil Supérieur des Finances (1999) has quite judiciously noted (our translation) that “reference to
tax here is purely notional, since the amounts attributed are not even a function of revenues generated by the tax. A
funding system would reach an identical result, without giving the illusion of a fiscal autonomy that does not exist.” The
total amount thus obtained was, during the transitional period, divided between the two main Communities using a 57.55
– 42.45 rule.22 During the permanent period, the rule must, according to the special law respecting financing, “be
adapted according to objective criteria set by the law.” A law enacted in 2000 stipulated that the breakdown would be
prorated according to the number of young people between the ages of 6 and 17 regularly attending elementary and
As is true of the Regions, the Communities benefit from own-source tax and non-tax revenues. The Communities could
levy taxes under the same conditions as the Regions (see point (c) above), but in reality the Communities have never
exercised this power, essentially for want of being able to determine who is a taxpayer of either the French-speaking or
the Flemish Community in the Brussels-Capital Region. As for non-tax own-source revenues, mention should be made
of the tuition fee paid by higher education students.
RECETTES ET DÉPENSES BUDGÉTAIRES DES COMMUNAUTÉS ET DES RÉGIONS POUR 2000
10,6 2. Own-source tax revenues
2.0 3. Non-tax revenues
Aid to French-speaking com.
Other 1. Shared tax revenues...
View Full Document