The Luxembourg Inland Revenue (ACD) is undergoing a significant transformation, driven by the planned tax reform and an urgent need to modernise its operations through digitalisation.
To manage the increased workload and reduce the administrative burden on both its staff and the public, the government is supporting the ACD’s restructuring with a new framework bill. Jean-Paul Olinger, Director of the ACD, outlined this multi-faceted strategy to the Parliamentary Finance Committee on Tuesday morning.
Olinger detailed that the transformation will focus on four key areas: the internal organisation and structure of the ACD, the layout and function of its public offices, comprehensive staff training, and a crucial overhaul of its IT systems. The goal, he explained, is to equip the agency with modern digital tools that match current standards.
While recruitment will be strengthened to support this effort, Olinger did not provide specific figures on future staffing levels or the detailed budget. He expressed confidence, however, that the allocated resources are sufficient. The director stated that the ACD is “pleased” the foundational bill has been tabled, as it provides a necessary framework to begin work immediately – even if the legislation is later adjusted.
This head start, Olinger stressed, is essential for the ACD to be fully prepared to implement the reforms and provide clear public guidance by the beginning of 2027.
Following the committee meeting, MPs from both the ruling coalition and the opposition expressed broad satisfaction with the proposed direction. André Bauler of the Democratic Party (DP) welcomed the move to simplify procedures, arguing that effective digitalisation should eliminate the need for the ACD to repeat the same manual operations annually. He stressed, however, that the new systems must be genuinely user-friendly, secure, and designed so that taxpayers are willing and able to use them.
Sam Tanson of the Green Party (Déi Gréng) echoed the emphasis on accessibility, warning that individuals uncomfortable with digital technology must not be left behind. She pointed to common public sentiment where some feel “overwhelmed” by digital transitions and stated her party was reassured by the commitment to maintain a physical presence. “It must also be possible in the future to have contact with a person”, Tanson said, “and not be stuck in front of a screen.”
The Luxembourg Socialist Workers’ Party (LSAP) also underscored the principle of inclusion. MP Franz Fayot specified two critical points for his party: first, preventing a “digital divide” that could exclude those without access to or familiarity with computers, often older citizens, and second, leveraging the reform’s potential for data analysis. He highlighted that the ACD’s data should be used for forecasting, particularly in the context of artificial intelligence and the future of work. “Income tax, as a keyword, will also have very significant effects”, Fayot said, “We must not forget to also use the tax authority as a source of data, to be closer to this reality and to be able to make forecasts.”
MP Sven Clement of the Pirate Party, meanwhile, stated that several key questions remain unresolved. He noted that his party has numerous pending questions regarding the bill, particularly concerning the specific expectations the government and the ACD have for the Chamber of Deputies. Clement characterised the Tuesday session as “more of a general overview” rather than a detailed legislative discussion.
Despite this, he acknowledged a clear public demand for modernisation. “It is evident that citizens want digitalisation”, Clement said, “and many do not accept the current solutions offered by the ACD to the same extent or are dissatisfied with them.”
In a separate but related disclosure, the Parliamentary Finance Committee indicated that a reform of the property tax is not anticipated before 2028. According to MP Sam Tanson, this issue warrants attention “with at least as much energy as digitalisation.”
