After Germany, Wallonia is also thinking about introducing a toll. A resolution for a toll was recently discussed at the Walloon Regional Government’s Budget Committee on 11 February. The plan for the Walloon toll follows the German idea: a road vignette, with the price differentiated by time period. Walloon taxpayers can deduct the cost of the road vignette from their road tax. The additional revenue is estimated at €50 million a year, which is actually paid by foreign car users, including Flemings.
German tolls: no discrimination?
The German government has already passed a law introducing a road vignette in 2015. It will take effect from 2020. Austria has challenged this toll in the European Court of Justice (ECJ) on grounds of discrimination. This is because German motorists are compensated for the toll via a deduction from their road tax, while foreign motorists cannot. With this, different treatment exists, Austria said, supported by the Netherlands.
In this case heeft de Advocaat-Generaal Wahl recentelijk advies aan het HvJ uitgebracht. Wahl concludeert dat met het Duitse plan geen sprake is van strijdigheid met de Europese non-discriminatieregels. Hiervoor wordt een onderscheid gemaakt tussen de Duitser als automobilist enerzijds en als belastingbetaler anderzijds. De Duitser wordt als automobilist namelijk hetzelfde behandeld als de buitenlandse automobilist. De tolheffing geldt immers voor zowel de binnenlandse als buitenlandse automobilist. Er is dan ook geen nadeligere behandeling tussen de automobilisten. De Duitser als belastingbetaler ontvangt de korting op de wegenbelasting. Aangezien de buitenlandse automobilist geen belastingplicht voor de wegenbelasting kent, is er ook geen sprakeof an equal situation and therefore also no discrimination is possible.
The ECJ is not obliged to follow Wahl’s opinion. Nevertheless, the past shows that the opinion of the Advocate General is often followed.
Financial impact mainly on border regions
Previous news reports by Expertise Centre ITEM (‘Tolls on the German Autobahn: consequences for border regions’ and ‘Effects of German tolls on border regions examined in more detail‘) briefly explained the effects of German tolls on border regions. Research results by consultancy firm Ecorys, commissioned by the Dutch Ministry of Infrastructure and Water Management and Rijkswaterstaat, estimate that d total costs will be €60-100 million, of which approximately 40% will be borne by border regions.
A Walloon toll will once again hit the border region. It is not unlikely that the expected additional revenue of €50 million will be largely borne by the border region.
Due to the toll, the Dutch motorist faces road tax in the Netherlands as well as tolls in the border countries. As a result, they actually pay more than German and Walloon motorists after a toll is introduced. From a cost perspective, Dutch cross-border commuting to Wallonia and Germany becomes more unattractive, whereas German and Walloon cross-border commuting to the Netherlands becomes more advantageous and therefore more attractive.
Inefficient domino effect
The Cross-Border Impact Assessment 2017 by Expertise Centre ITEM investigated the German toll (‘Dossier 1: The potential effects of the German passenger car toll on border regions’). A survey showed that many motorists in the border region will avoid the toll. This is expected to cause a lot of transfer from motorway to secondary road. Thus, the effect of a toll is more limited.
In the report, researchers Martin Unfried and Barbara Hamacher also concluded that the introduction of a national toll will cause a chain reaction. The Walloon intention, encouraged by Germany, endorses this chain reaction. Such a chain reaction is also in conflict with the European Commission’s May 2017 legislative proposal for a European, route-related toll system, which levies taxes depending on kilometres driven and CO2 emitted.
The confluence of national tolls creates an increase in bureaucracy, which imposes administrative burdens on cross-border workers. In addition, the survey shows that the feeling of Euroregional togetherness and cooperation is strongly negatively affected: an open border becomes less valuable.
Continued
The ECJ ruling is still some time away. Depending on this ruling, Wallonia will also consider its proposal for a toll. A reaction from other governments, as the Netherlands and Flanders, with the introduction of their own tolls is not unlikely, with all its consequences for Europe.
Meanwhile, the Flemish government has indicated it is not a fan of such a toll. It sees more in a kilometre charge, as under the Commission proposal. So there will still be some discussion during the bi-monthly meetings between the Flemish and Walloon mobility ministers.