Regional taxes in a slump despite population boom

Despite a growing population, regional tax in Belgium has levelled off in Brussels. Officials are trying to understand why, with an increase of nearly 20,000 housing units between 2009 and 2013 there exists a drop in tax revenues from the regional budget. Each household pays a flat fee of 89 Euros per year, making the latest numbers somewhat of a mystery.

However, upon closer examination, in 2012 there were nearly 10,000 less fee payments made due to exemptions. The financial exemptions take effect when households do not have the sufficient income to pay, or have four or more children. The rules also apply to disabled individuals or those suffering from a serious illness.

Officials say that the shortfall can most likely be attributed to these exemptions. But there is cause for concern as exemptions are growing faster than the population growth. With only 57% of regional residents paying the tax fee, the issue is being looked at closely in order to find a solution.