The new government reduced the tax table by 4 index tranches this year, which could give households €1,100 more in their pockets each year, depending on the composition of the family, Frieden said in his speech.
Single parents should see some relief from 1 January 2025 onwards. Frieden said there were more and more single-parent households in Luxembourg, leading to the proposal of a single tax bracket in the coalition agreement.
Read more: Tax cuts in 2024: This is how much more you’ll earn
Furthermore, corporate tax will be slashed from 1 January 2025 to adjust it to the international average, dropping from 17 to 16%.
Draft bill passed: 15% minimum tax rate set for multinationals in Luxembourg
To tackle the cost of living crisis, the electricity price cap is set to be maintained until 2025.
In addition, the government is planning a universal healthcare pilot project to target the most vulnerable people in society and ensure everyone has access to doctors and medication.
In addition, the government is planning a universal healthcare pilot project to target the most vulnerable people in society and ensure everyone has access to doctors and medication.
