Minister of Finance Gilles Roth provided clarity on the tangible impact of an upcoming rise in Luxembourg's CO2 tax, explaining that this adjustment translates to an additional 1-2 cents per litre of petrol or diesel.
The legislative proposal received approval in the Chamber of Deputies, with the coalition parties - the Christian Social People's Party (CSV) and Democratic Party (DP) – as well as the Luxembourg Socialist Workers' Party (LSAP) and the Green Party (déi gréng) voting in favour.
The Alternative Democratic Reform Party (adr) and the Left Party (déi Lénk) voted against, while the Pirate Party abstained.
The CSV and DP aim to adhere to the previous government's plan, seeking to raise the tax to €45 per tonne of CO2 by 2026.
To mitigate the impact of the increase, the corresponding tax credit will also see an upward adjustment on 1 January, with a maximum increase of €24, rising from €144 to €168.
The full credit of €168 will be applicable for annual salaries up to €40,000, progressively decreasing up to a salary of €80,000.
Three parliamentary motions related to the proposal were submitted, and all were rejected.
The LSAP proposed regular reassessment of the CO2 tax credit, along with transparent disclosure of the government's utilisation of the CO2 tax revenue, originally meant to fund measures for combatting climate change and social measures.
The adr called for the adjustment of a flat rate per kilometre, favouring individuals with longer commutes, instead of a CO2 tax.
The Pirate Party's motion aimed at aligning the scale of the tax credit with indexation was also rejected.
