Smallest increase tax revenues water boards in 8 years

Water board authorities expect to receive taxes to the amount of 2.0 billion euro in 2006, a 3.4 percent increase on 2005. It is the smallest increase since 1998. Over the last decade, water board taxes rose by an average 4.7 percent annually.

Water board taxes

Water board taxes

Head tax up sharply

The head tax increase imposed by water board authorities on residents of water board districts is largely used to cover the costs of maintenance of embankments and groundwater level control. In 2006, water head tax revenues are expected to be 4.4 percent higher than last year.

Pollution tax revenues are not anticipated to rise that fast. Pollution taxes cover the costs of surface water quality control and waste water treatment. In 2006, households and the private sector will face a tax rate increase of 2.8 percent compared to 2005.

During the last decade, head tax rates have risen faster than pollution tax rates. Water head tax rates rose by an average 6.4 percent annually, revenues from pollution taxes by no more than 3.7 percent.

Annual change head tax and pollution tax rates

Annual change head tax and pollution tax rates

Pollution tax: share of households drops slightly

Pollution tax is imposed on households and businesses. Total pollution tax revenues will amount to 1.2 billion euro in 2006. The pollution tax rate for households will rise by 2.0 percent; the private sector will face an increase by 4.7 percent. The bulk ((71 percent) is paid by households. Last year, the share paid by households was marginally higher.

Revenues water head tax and pollution tax by category

Revenues water head tax and pollution tax by category

Head tax revenues rise by 8 percent

Head tax is composed of a part paid by households, a part paid by owners of non-residential buildings and houses and a part imposed on land owners. The anticipated increase in head tax revenues in 2006 is largely paid by residents and will top last year’s revenues by 8.0 percent. Head tax revenues imposed on owners of non-residential buildings and houses will rise by 4.1 percent in 2006; revenues of taxes paid by landowners will fall marginally by 0.6 percent.

Paul van der Beek and Dick Zeldenrust