The Walloon Government has decided not to approve the municipal tax adopted by the City of Charleroi targeting Brussels South Charleroi Airport (BSCA).
A decision based on economic analysis
The municipal tax directly targeted Charleroi Airport, at a rate of €3 per passenger. This amount was to be paid by BSCA, the concessionaire of the infrastructure, most of which is owned by the Walloon Region, rather than by the airlines. After a thorough investigation, the Walloon Government judged that this tax threatened the general interest of the Region as a whole, and the financial viability of Charleroi Airport in particular. If applied, according to its forecasts, the airport would fall into a deficit jeopardising its ability to continue operating.
More broadly, this decision serves a clear purpose: firmly defending the economic and strategic interests of the Walloon Region. For more than twenty years, and through substantial public investment, successive Walloon governments have agreed on the importance of this major economic asset that Charleroi Airport represents.
Exceptional 2024 results
The City of Charleroi justified its tax mainly on the basis of the airport's 2024 financial results, which are largely due to a still-pronounced post-crisis recovery effect.
These figures cannot therefore be considered representative of a normal situation. No analysis was carried out of the tax's future impact for the 2026-2030 period, even though Charleroi was aware of the numerous upcoming investments, the regional policy statement, and that of the federal government through the increase in the airline ticket tax.
A disproportionate and unjustified tax
The tax introduced was based on turnover rather than net profit. This meant it had to be paid even if the airport was operating at a loss. Unlike corporate tax, it therefore amounted to a tax on gross income, which was fiscally questionable.
Furthermore, the measure could have harmed the entire local aviation sector. BSCA's main airline, Ryanair, had already announced that a cost increase linked to the federal and municipal tax could lead it to withdraw 5 aircraft from its Charleroi base. Such a withdrawal would have had direct consequences on employment, local economic activity and the accessibility of low-cost flights for citizens.
A responsible and consistent decision
For the Walloon Government: “The Region had warned: piling up taxes on a strategic asset meant risking weakening employment and economic activity in Charleroi and Wallonia. Charleroi Airport must be able to plan for the future. Given the significant investments linked to the growth of its activity and the improvement of its infrastructure, stability and visibility are more essential than ever.
This decision forms part of a coherent strategy complementing the Walloon Government's initiative towards the federal Government to revise the boarding tax, in order to protect employment, preserve economic activity and secure the future of our Walloon airport network. It also fits within the context of the government agreement, which aims to strengthen the autonomy of management companies and reduce their dependence on subsidies.”