Tax incentive policies will become dominant in Luxembourg
Ahmet Kurt, Unsplash
Luxembourg Finance Minister Gilles Roth presented a vision of tax reforms as part of the 2025 budget. The key objective is to increase the purchasing power of citizens and improve the competitiveness of businesses. The central thesis of the government's initiatives: to provide people with "more net with gross" - a well-established concept in German-speaking countries, referring to an increase in net income after taxes.
These reforms were part of the ambitious programme "Luxembourg to Strengthen the Future" endorsed by the coalition. They include:
- Reducing the tax burden on citizens.
- Increasing the attractiveness for business by reducing costs.
In the face of growing economic challenges, the balance between maintaining competitiveness and supporting citizens has become key for Luxembourg. The government has set clear priorities: increasing the purchasing power of the population and stimulating the corporate sector.
Gilles Roth emphasises that the tax reforms are aimed at improving the quality of life, which is in line with the government's overall commitment to supporting sustainable economic growth.
Some critics have pointed out that the use of the slogan "More net with gross" may be linked to political interests. However, Gilles Roth insists that it is a universal concept that reflects the real objectives enshrined in the coalition agreement.
