The desperate city of Tienen is introducing, in addition to a whole range of taxes for its residents, a new “surface tax” for businesses on its territory.
The citizens of Tienen are being hit with no fewer than five new taxes. Not only are we becoming the first city with its own city tax of no less than €290 per family, but Tienen is also crowning itself as Flanders’ tax champion. With an additional personal income tax of no less than 8.6%, Tienen ranks at the absolute top in Flanders. GAS fines are explicitly designated as a source of revenue, and figures show they are rising exponentially. The introduction of “Diftar” will also cause a significant increase in waste-collection costs.
Companies are also being called upon to fill the city’s bottomless pits: the former motive power tax and promotion tax are being replaced by a more profitable ‘surface tax’.
What has been decided?
The city is introducing one uniform business tax based on total business floor area:
- 0.70 € per m² (built and unbuilt)
- Minimum amount: €200 per establishment
The estimates the revenue at around €2.1 million per year.
Possible impact on businesses
Although the power tax and promotion tax are being abolished, the new surface tax will be significantly more expensive for many companies. Businesses with large floor areas — such as supermarkets, distribution centres, industrial companies, and warehouses — will experience a higher tax burden than before (not to mention double taxation on top of the existing property tax).
What does this mean for commercial real estate, economic growth and employment in Tienen?
It goes without saying that cities and municipalities that start burdening companies and citizens with new taxes automatically lose all credibility in attracting new businesses. The fact that growing companies that create employment are penalised for doing well and hiring more people is a contradiction in itself. The new surface tax is one of the most far-reaching changes in Tienen’s business taxation policy in recent years, especially for companies with large premises like supermarkets, factories & logistics warehouses.
Probably not only in Tienen
Virtually all levels of government, from regional to federal, have fallen into the trap of 0% or negative-interest loans. Since governments will never be able to repay these debts, they must renew them at maturity — this time at interest rates of 3% to 4%. Since governments never conclude that they need to cut their own expenses, they will resort to taking the money from their citizens and businesses. We are for instance very curious to see which tidal wave of taxes and levies bankrupt Brussels will unleash upon residents, property owners, and companies. Run ...!
Sources
Fiscale druk zet Tiense ondernemers onder druk
Heel veel kritiek op meerjarenplan uit verschillende hoeken in Tienen: “Schuldenlast drie keer Vlaams gemiddelde”
Nieuwe bedrijfsbelastingen niet te verteren voor onze bedrijven
Tienen gaat belastingen komende jaren verhogen
Tienen verhoogt belastingen fors