Is Belgium ready for the kilometre tax? "It won't be visible until April 1," says Lode Verkinderen, Secretary General of Transport and Logistics Flanders (TLV). The organisation recently sounded the alarm on the huge impact this tax will have on transport prices. The only option to avoid bankruptcy is to pass on the charge. The organisation is busy preparing. "We are helping our members with business to prepare for the imminent introduction."
No postponement
Transport and Logistiek Nederland (TLN) asked for the Belgian kilometre tax to be postponed at the start of March as they didn't think the preparations for a problem free introduction would be completed. Lode says the kilometre tax will not be postponed for a number of reasons. "You can look at this from two sides: from the political judicial side and from the practical side. When it comes to political judicial, I can see that the legal establishment and the political consensus on this have been set clearly for years. I also see no reason for them to change this. Flanders, Brussels and Walloon all have income from the kilometre tax budgeted as of 1 April. If they were to postpone it, it will not only create a hole in the budget, but will also cause them to lose political face in the three parliaments. The start of the kilometre tax is also full rooted in the law, so it can only be postponed by law. Creating legislation, even urgent legislation, takes months. I don't see an urgent law being created on time. It's too late for it now."
Growing pains
When he looks at the practical side of things he also doesn't see any big reasons why Belgium isn't ready. "We have certainly found some affairs in Belgium with growing pains. TLV is glad it recommended its members to install the obus (on-board units) on time. By advising them to organise everything on time, we were able to find the affairs that weren't right beforehand. Satellic, the exploiter of the system, has promised to cure the growing pains step by step. This is also in the agreement between the government and Satellic. So far the targets that were agreed have been achieved, so Belgium is ready in this sense."
Will companies drop out?
A lot of transport companies in Belgium have dropped out in recent years, partially due to the low margins in the sector. Will more follow due to the kilometre tax? "The tax may be the final straw for some transporters," says Lode. "I don't want to seem negative, but it won't be a small percentage. A transport business that doesn't carry on all the charges is doomed."
Extra costs
The costs for an average Belgian road transporter will go up by an average of 8% as of April 1. TLV has calculated the costs for the different countries. "Yet it's different for each company at a trip level. You don't have to be a mathematical genius to understand that a trip from Maastricht to Bruges will have a different impact on the costing price than a trip from Groningen to Antwerp. The 8% is mainly for national transport."
Alternatives
Will transporters from other companies now avoid Belgium or consider other routes or options? "It varies per sector and per product. I expect an impact on specific goods streams of which the share of the transport price in the total price is considerable. People are more likely to choose an alternative if it's available. An example is the problem of the traffic towards Germany, where Belgian ports compete with Dutch ports. When choosing a port they will look at the kilometre tax, which the Netherlands doesn't have. Of course shipping companies have known this for a while. Fusions have even been made. The question is: is the element of the kilometre tax the deciding factor in choosing a port? The fact is that it won't benefit the attraction of Antwerp. If the added value of the transported goods is low, the costs per kilometre are more important."
For more information:
Lode Verkinderen
Transport en Logistiek Vlaanderen
Land van Rodelaan 20
B-9050 Gentbrugge
T +32 (0)9 210 82 10
F +32 (0)9 232 22 79
lode@tlv.be
www.tlv.be