Water tax proceeds marginally up again

12/02/2008 15:00

In 2008, water board authorities estimate to receive more than 2 billion euro in taxes, an increase by 2.2 percent relative to one year previously. Just like in 2007, the increase is marginal compared to the period 1999-2006.

Annual increase water taxes

Annual increase water taxes

Water board authorities impose two types of taxes to cover their expenses: poll tax and pollution tax.

More tax proceeds form owners of houses and non-residential property

The proceeds of the poll tax are estimated at 0.8 billion euro, an increase by 2.4 percent compared to last year. With 4.9 percent, owners of houses and non-residential buildings face the largest tax increase. The poll tax for owners of houses and non-residential buildings partly depends on the value of their property. Revaluation of the property has increased its value by no less than 7.6 percent. Many water boards took a lenient attitude towards property owners and authorised a tax rate cut. 

The proceeds of the poll tax for ‘residents’ have also increased (2.7 percent). This is mainly due to tax rate increases.

Annual increase water taxes

Annual increase water taxes

Tax proceeds from land owners decline

On the other hand, tax proceeds for land owners, e.g. farmers, dropped by 4.6 percent. Urban expansion causes the amount paid by land owners to shrink. Water board authorities tend to raise the tax burden for owners of houses and non-residential buildings and residents. These two categories benefit most from the activities of the water boards.

Private sector pays smaller share pollution tax

Total proceeds of the pollution tax are estimated at 1.2 billion euro. The increase relative to 2007 is 2.0 percent. Nearly three quarters is paid by households. This year, households will pay an additional 2.3 percent for clean, pure water, whereas costs for the private sector will rise by 1.4 percent.

Annual increase pollution tax

Annual increase pollution tax

In recent years, the amount of pollution tax paid by the private sector has shrunk, because they have taken effective measures to reduce the discharge of waste water. 

Paul van der Beek and Dick Zeldenrust