In a letter sent to the Belgian government, the European Commission urged Belgium to abolish all taxes levied on satellite dishes and to refund any taxes already paid. It estimates that these taxes act as a disincentive to receiving satellite broadcasts from other EU countries and to the development of satellite TV in Belgium and so violate EU Treaty rules on the freedom to provide services. In May last year, the EC had already sent a “reasoned opinion” (the second stage of formal infringement proceedings) to Belgium, but it has since received several complaints that the tax is still imposed in a large number of municipalities, especially in the south of the country (Wallonia). Moreover, all requests for reimbursement of taxes already paid have so far been systematically rejected by the authorities. In most cases, the annual tax has been set at BFr 5,000 (Euro 124) but in some municipalities the charge is as much as BFr10,000. If Belgium does not comply with the EC’s demand it could be referred to the European Court of Justice.