Gatz: ‘Brussels charging station tax would violate regional legislation’

The municipal tax on charging stations that several Brussels municipalities want to introduce is contrary to Brussels legislation, says outgoing Minister of Finance and Budget Sven Gatz (Open VLD), who also warns that the tax will hinder Brussels’ economic development.

Brussels municipalities want to introduce a charging station tax in 2025. The tax could be 125 euros per year per plug—a charging station usually has two plugs. Some municipalities want even higher taxes, while others, such as Saint-Gilles and Ixelles, have already introduced them.

Tax Compensation Fund

However, despite the municipal autonomy to levy local taxes, Minister Gatz says this intention violates the Dec. 1, 2022, ordinance to involve municipalities in the region’s economic development.

The ordinance stipulates that municipalities renounce any new tax or increase in an existing tax that affects local and regional economic development. In exchange for this commitment, the municipalities can seek regional financial support from the Tax Compensation Fund.

“Violating their political commitment”

“Since the 19 Brussels municipalities have committed themselves to this in a binding agreement with the capital region for 2023-2025, they are violating their political commitment and legal obligations with the announcement of the charging station tax,” the Open VLD Minister argues.

He points out that economic players such as Beci, Voka, Energy Vision, and Environment colleague Alain Maron (Ecolo) have already indicated that the municipalities’ initiative is economically counterproductive and hinders the transition to sustainability.

Gatz has now asked his colleague, who is in the custody of the municipalities, to review the file legally. He will instruct his administration to put all payments from the Tax Compensation Fund on hold.

1,700 charging points

Brussels currently has around 1,700 charging points, with over 500 new points installed in 2022. In 2023, EnergyVision added more than 1,200 additional points for Sibelga, representing around ten charging points/km². The Brussels Capital Region accounts for 10.4% of the national supply.

Electrify. Brussels, responsible for deploying electric charging points in Brussels, aims to have a stock of 22,000 points by 2035.

Two operators dominate the Brussels market: TotalEnergies and EnergyDrive. According to the newspaper La Capital, the latter has already made it clear that it will increase its installation of charging stations in municipalities that apply these taxes and is even considering withdrawing from these areas.

EnergyVision not happy

In a comment on LinkedIn, Maarten Michielssens, CEO of EnergyVision, argues that Brussels mayors would be better off charging parking fees or a variable charge per kWH rather than a flat fee. According to Michielssens, Brussels already has the most expensive charging stations in the world due to its specific grid and difficult logistics. “To now unilaterally levy a fixed cost (annual tax) on top of that, without one euro of certainty of revenue: that makes any third-party financing model impossible.”

EnergyVision, which says it offers the lowest charging price for both slow and fast charging, €0.36/kWh, will therefore no longer participate in Brussels tenders if this municipal tax framework is in place. “We are not willing to raise our prices—and thus destroy our business model of cheap, green energy—to feed a municipal treasury.”

The CEO also cites the example of having made 20 charging points public at its headquarters in Brussels by opening its parking lot to the neighborhood so they can come and charge there.

“We gain nothing from that: we have lost 20 parking spaces, and anyone can come and charge at cost price. So now the municipality of Jette will charge us 2,500 euros a year for that. Pretty crazy. We close our parking again. Bad luck to the neighborhood, bad luck to the energy transition, and bad luck to those who want to charge their cars. What a stupid, stupid tax. Enough is enough. We are moving our main office back to Ghent this summer.”