Prime Minister Speech On The State Of The Nation
On May 8, 2012, the Prime Minister Jean-Claude Juncker presented to the Chamber of Representatives the annual "State of the Nation" speech regarding the economic, social and financial country's situation. Hereafter a selection of the main measures contemplated by the Luxembourg Government. Additionals news will be published when more information (e.g draft bills) is available on the proposed measures.
Investments: Although investments remain at a satisfactory level (1.800 EUR million estimated for 2012), they will be reduced (125 EUR million less than initially planned): some constructions projects will not be achieved including by example road infrastructures. However, large amounts will continue to be invested in research and development sector and in the IT and broadband sector. In new technologies, Luxembourg is well underway, with 1000 new jobs created. Sector growth will continue despite the programmed modification of the VAT regime applicable to electronic commerce as from 2015 (see below). Investment in data centers and networks will continue. The satellite industry will do its part in this development. Taxation: The 0,8% crisis contribution, which entered into force on January 1, 2011 applied on professional and replacement income as well as to all categories of non-professional income taxable in Luxembourg. This contribution was repealed with effect January 1, 2012. The Prime Minister has confirmed that this crisis contribution will not be reintroduced for 2013, cutting off definitively the rumours. Maximal individual tax rate could be increased to 42,7%. Currently, the maximum tax rate of 38% is applicable to taxable income between EUR 39,885 and EUR 41,793 and 39%...
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