On Wednesday 11 June 2025, Fondation IDEA Asbl issued a press release in relation to Luxembourg Prime Minister Luc Frieden’s comments on the proposed adjustments to personal taxation classes in Luxembourg, which were included as part of his State of the Nation Address on Tuesday 13 May 2025.
In its press release, Fondation IDEA referenced the government’s commitment to reforming the tax system by moving towards individualised taxation (single tax bracket) and quoted Prime Minister Frieden’s comments made in relation to the proposed changes during the State of the Nation address, where he said: “One of the options envisaged could be a new fiscal scale, close to the current class 1A, accompanied by an extended transitional phase for married or unmarried taxpayers, so that they are not disadvantaged."
The foundation remarked that, according to this proposal: “The creation of a single tax class (at the current Class 1A scale), accompanied by a transition period for couples married before the reform, could reintroduce significant ‘anomalies’ in personal taxation and consequently cause new disagreements between taxpayers.”
Moreover, the foundation noted: “Fiscal individualisation, often presented as a neutral and fair model, could therefore generate unwanted arbitrage and have budgetary consequences so far not mentioned.”
