Luxembourg’s Finance Minister has presented the 2014 Budget to the Chamber of Deputies. The 2014 budget does not include plans to raise value-added tax (VAT) in 2014 as had initially been predicted.
The Finance Minister has however indicated that the 2015 Budget will need to be harsher. The Government anticipates a VAT revenue shortfall next year of between EUR600m and EUR1.1bn, equating to between 4.9 and 9.1 percent of overall revenue, on account of changes to European Union place of supply rules for electronically supplied services from 2015.
Reflecting the success of the Luxembourg fund industry, revenue from the investment fund subscription tax is due to rise from EUR630m in 2013 to EUR730m in 2014. In contrast, income from excise and customs duties is expected to remain stagnant in 2014 for the third consecutive year.
