In a session of the Chamber’s finance and budget commission, the Greens recently stressed the importance of continuing to support people during the elevated inflation, particularly since Minister of Finance Yuriko Backes recently proposed tax reliefs as the 2022 deficit stayed below estimations.
The Greens thus put forward a number of ideas on how to use the €500 million included in Minister Backes’ proposal.
The party argued that it is important to introduce targeted reliefs designed to help small and middle-income households, which they said should include people who earn up to three times the minimum wage.
At the moment, many people are preoccupied by the variable rate on their housing loans as interests have drastically increased. MP François Benoy noted: “It is therefore important that we respond to the problem. And, it is important to socially target those who simply cannot carry the load any longer. ... The use of allocations and targeted tax credits, for instance, might be of help.”
Since so many people in Luxembourg struggle with the situation of the housing market, the Greens believe that investments into the sector have to be increased. MP Benoy elaborated: “A concrete measure would be for the government to use money and buy more apartments, as was planned. Funds should be unlocked to purchase apartments from private contractors that can then be included in the government’s offer.”
According to Benoy, this strategy would further help support a struggling sector.
The Greens also advocate an extension of the cap on gas and electricity prices, currently set until the end of the year. They believe that the situation may escalate otherwise and leave people facing great uncertainty.
