The Luxembourg government’s recent tax measures are providing some slight respite for taxpayers, but they are not enough to dispel concerns, says the Luxembourg Consumer Protection Association (Union Luxembourgeoise des Consommateurs, ULC). The association warns that the financial burden on households remains heavy, particularly because of soaring energy prices, the CO2 tax and food prices.
In a press release published on 27 February, the association welcomes the adjustment of the tax scale to inflation, but stresses that “much remains to be done.”
Gas and electricity prices, which have risen sharply since the start of the year, food prices and other ever-increasing day-to-day costs such as insurance premiums and council tax are putting an increasing strain on households. “The end of the tunnel is far from being reached,” warns the president of the ULC Nico Hoffmann.
The association particularly regrets , which would have helped to contain the impact on the most vulnerable households. “Despite energy bonuses and price hikes, these households have little or no financial margin left at the end of the month,” explains Hoffmann. According to the organisation, the government has failed to meet expectations and has preferred to “hide behind Brussels” rather than impose an extension of the support measures.
However, the financial pressure does not only affect low-income households. Households that have invested in sustainable solutions, such as heat pumps or electric mobility, also find themselves penalised by the new energy pricing. “For the ULC, a transparent and consistent policy based on predictability definitely looks different. Those who continue to advertise with the slogan ‘Plus de net du brut’ (More net than gross) are losing all credibility.”
Demand for action
Given this situation, the ULC is calling for concrete action, such as:
- new tax breaks, particularly for low and middle income earners;
- fairer and more predictable pricing for electricity and energy;
- measures to stabilise food prices.
“If we do not act quickly and decisively, there is a risk that a growing financial burden will fall on a large proportion of the population,” warns the association. For the ULC, the government has the financial resources to turn its slogan “plus de net du brut” into reality.
“Politicians must finally take people’s concerns seriously. No one can dispute that high energy prices, as the relevant minister [economy minister (DP), editor’s note] recently pointed out, are a risk to industry and the economy. But they also represent a risk and an extreme burden for very many households,” concludes Hoffmann.
This article was originally published in .