Dan Kersch calls for tax on companies gaining from covid


Dan Kersch, the deputy prime minister, outlined a proposed covid ‘crisis winners tax’ during the LSAP party congress on 21 March 2021. Library picture: Dan Kersch is seen speaking during a government press conference, 9 July 2020. Photo: Patricia Pitsch 

The LSAP has proposed introducing a tax on “the winners of the crisis”.

The Luxembourg Socialist Workers Party (LSAP) held its ordinary congress on Sunday, online, and reelected its governing body, as was expected. Dan Kersch, deputy prime minister and labour and sports minister, delivered the keynote policy address. His remarks will likely elicit some commentary in political circles in the coming days.

Kersch said that there is no doubt that the pandemic has benefited some. “Some people are coming out of the crisis winners,” he said. He therefore called for a “covid tax”, which would be slapped on these winners, selectively, based on certain criteria--such as an increase in turnover or an increase in the number of employees--to be determined and quantified.

The deputy prime minister visibly intends to exert his party's weight within the government coalition to enact the policy.

Once again, the LSAP has indicated that young people can, in no way, pay the price for the pandemic.

Aware of the current economic difficulties and the delicate political situation, the LSAP conceded that the long-awaited tax reform, now postponed until 2022 at the earliest, cannot be as robust as what had previously been hoped for. The Socialists, however, want income tax to be reduced, while rent, property sales, dividends and the sale of shares on the stock market should be taxed more heavily. 

The congress was also an opportunity to target its main political rival, the CSV. As the CSV faces an internal meltdown, the LSAP congratulated itself on its great level of unity. And they ruled out any possibility of collaboration with CSV, at least for the time being.

Originally published in French by Paperjam and translated for Delano