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The scope of regionalization was largely symbolic in the case of still other taxes. The Flemish region demanded
jurisdiction over the rate for the Eurovignette, although the rate results from a joint decision of six countries of the
European Union. However, there was a desire to paint a picture (albeit an illusory one) of complete regionalization.
57 Decree of December 22, 1999 adopted by the Flemish region.
In the two other regions, taxpayers needed to ask for the subsidy. 211 Commission on Fiscal Imbalance 4.2. Future prospects
4.2.1. Contents of the agreement The political agreement of October 16, 2000 marked a new phase in the process of decentralizing taxes and offered
guidelines for its practical application.
“The so-called regional taxes and certain taxes that are an extension thereto, e.g. vehicle registration fees,
the Eurovignette, mortgage registration fees, and duties on gifts, and the radio-TV fee shall be regionalized.
The transfer shall take into account the following conditions:
a) Levelling or budgetary neutrality in respect of federal power
When all revenues from these taxes are transferred, the federal government shall be compensated to cover the loss of
revenue sustained. From the standpoint of budgetary neutrality, the portion of personal income tax allocated to the
regions shall be reduced by the additional tax revenues of each region.
b) Avoid fiscal delocalization
When regional tax jurisdiction is allocated, the risk of tax migration, delocalization and harmful tax competition between
the various governments shall be avoided. If need be, associated measures should be elaborated in this respect.
Compulsory cooperation agreements shall be concluded with respect to the road fund tax on automobiles and vehicle
c) No loss of funds for the communities and regions
The transfer of regional and related taxes and the radio-TV fee shall be carried out in such a way that no region or
community loses as a result funds governed by the existing financing rules.
d) German-speaking community
As for the German-speaking community, it shall assume complete jurisdiction over the radio-TV fee.” [our translation]
The following sections focus on the way in which the objective of regional autonomy is reflected in the Lambermont
agreement, the technical procedures required to implement it, i.e. decisions made concerning the collection of regional
taxes and the mechanisms introduced to maintain budgetary neutrality, and conditions governing certain taxes to
combat tax migration, delocalization and harmful tax competition.
This section examines the procedures pertaining to regionalization introduced by the Lambermont agreement. The
outcome of demands for fiscal autonomy is summarized in the table below, which has the same structure as Table 4.1.
(the components modified by the new agreement are indicated in boldface).
The first three taxes, i.e. the tax on gambling and betting, the tax on the opening of drinking establishments and the tax
on automatic amusement devices, were already regionalized and have no...
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