Consumers under pressure: ULC demands tax fairness and price controls
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"It's not easy to be a consumer nowadays," admitted Nico Hoffmann, president of the Luxembourg Consumers' Union (ULC). On Monday, he presented the organisation's current priorities - and the main topic was once again rising prices and falling purchasing power.
According to Hoffmann, the main hit came from energy tariffs, despite a gradual slowdown in inflation. In 2023, the ULC processed 4,645 new cases, including complaints, disputes and requests for information.
The organisation insists that it was necessary to extend the energy price cap and freeze the carbon tax increase. As a reminder, since its introduction in 2021, the tax has increased annually by 5 euros per tonne of CO₂ and will continue to grow until 2026.
Hoffmann also criticised the increase in utility charges, especially for rubbish collection, in some communes. This, he argued, increases tax pressure on ordinary citizens. He called for a "fairer tax system", especially in light of the expected tax reform for the current parliamentary term (2023-2028).
He noted that the recent tax scale adjustment is a step forward, but there are still 2.5 indexing steps that need to be integrated, including one scheduled for the spring.
Hoffmann, who has led ULC for 16 years, said he will not run for another term. "I have fulfilled my duties for a long time, now it's time to pass the baton to the young ones," he said. A new president will be elected on 11 June at the ULC general meeting.
Of particular concern is the bill on class action lawsuits, which was introduced back in 2022. Due to approvals in the Council of State, the document has not yet entered into force. Hoffmann hopes that lawmakers will pass the bill as early as 2025, which would strengthen consumer rights in legal terms.
ULC continues to ensure that the voice of consumers in Luxembourg is not drowned out by bureaucracy and tax burdens, especially against the backdrop of a volatile economic situation.
