Walloon public offices, municipalities, and provinces should now be legally required to pay their leased vehicles’ registration tax in Wallonia. This is part of an ongoing fight from the Walloon government to bring back losses from leased vehicles registered in Flanders.

Wallonia is pushing back. Finance Minister Andrien Dolimont (MR) is taking legal action to recover some of the road taxes Wallonia is missing out on. Specifically for leased vehicles registered in Flanders but used by Walloon municipalities and provinces, and other public offices.

Estimated loss of €47 million

This is a case that could only happen in Belgium, a small country with three regions and three different road tax regimes. The issue at hand here is the fact that the head offices of most leasing companies in Belgium are located in Flanders and Brussels. Therefore, road taxes are perceived in those regions whether or not the main driver lives there.

In 2020, former Budget Minister Jean-Luc Crucke estimated the loss of revenue for the Walloon treasury at €60 million. His successor, Adrien Dolimont (MR), predicted a loss of €47 million in 2021.

The government of the South has been trying for years to find common ground with its Northern counterpart but with no result. “It is not possible to date to renegotiate a cooperation agreement aimed at stemming this loss of revenue for Wallonia,” explained Minister Dolimont in a Parliament session on Monday.

Legal action for public offices

The Finance Minister is gearing up and declared that he would take legal action to recover some of the road taxes. That should push Walloon public authorities to pay their registration and road taxes in their region.

“There is a moral obligation on the part of the Walloon public authorities (…) to pay the registration tax and road tax in the Walloon Region in the future when they opt for leasing,” added Finance Minister Andrien Dolimont (MR).

According to the Minister, it’s simple, legally unassailable, and as easy as adding a clause to the contract stating that taxes aren’t included in the rental price. He’s even ready with a model. However, Minister Dolimont admits that it’s a whole different story to push households and businesses these their leased vehicles’ taxes in Wallonia.