The new coalition government led by Luc Frieden has approved a landmark draft law that will compensate the tax scale by 1.5 wage indexations.

The bill, which was passed by the government council on Monday, fulfils a key CSV-DP coalition commitment.

The new rate, retained as a key goal in the coalition agreement signed by the Christian Social People's Party (CSV) and the Democratic Party (DP), is set to come into effect on 1 January 2024.