The state budget was approved 31-29 on Thursday at the Chamber of Deputies. Photo: Twitter/@chambrelux
Luxembourg’s state budget, which was voted approved 31-29 by MPs on Thursday, enters into effect on 1 May.
The so-called “Gambia coalition” (DP, LSAP and Déi Gréng) voted in favour of the budget, while the ADR, CSV, Piratepartei and Déi Lénk voted against it.
In normal circumstances the budget is tabled in October, voted before year-end, but this was not possible last year due to the elections. This year therefore saw the budget tabled on 5 March by finance minister Pierre Gramegna (DP). After being studied by the finance committee, rapporteur André Bauler (DP) could table the summary of it and present it on Wednesday during a plenary session.
Among the proposals outlined in the budget were the extension of the super-reduced VAT rate of 3%, particularly to e-publications and online press; a 1% decrease in the corporate income tax rate (to 17%); as well as the setting up of a minimum social salary tax credit which would increase the minimum social salary by €100, retroactively to 1 January of this year. Gramegna noted that a number of measures were “in favour of companies, and they know it.”
A total of 20%, or €455m in 2019, will be dedicated to environmental and climate investments, and this figure will rise over the life of the framework.
During the debate, according to our colleagues at Paperjam, Martine Hansen (CSV) not only denounced what she called a “catchall budget” based on random figures but also questioned whether certain measures outlined in the budget were even relevant for citizens.
Gast Gibéryen (ADR) went even further, calling the budget “a crime against future generations”.
Also voted on Thursday, this one unanimously, was the 2017 national accounts which shows a surplus of €293m.