Adehm queried the minister on a number of issues surrounding the promised fiscal reform, ranging from practical questions to concerns about implications for taxpayers.
In Adehm's parliamentary question, she asked whether any task forces had already been put together to work on the project, as well as whether it is correct that no taxpayer will have to pay more in taxes than they currently do. Amongst other things, Adehm also asked whether the ministry will present tangible proposals ahead of the 2023 elections.
The issue of income tax is one that has recently sparked a significant amount of public interest. In March, we reported that a petition advocating lower taxes for single people had reached 4,500 signatures (the required amount for a debate in the Chamber of Deputies) within a week. The parliamentary commission on petitions announced debates for other petitions that reached the minimum amount of signatures, but has yet to announce a date for the petition concerning income tax.
In his response, Minister of Finance Pierre Gramegna reiterated a passage from the coalition agreement, which affirmed that the government will pursue a project introducing a neutral fiscal model for income tax. Highlighting the "paradigm shift" that such a reform would entail, the text cites the example that one of two spouses would no longer be discouraged from working, as can occur in the current system.
In addition, a single income tax bracket would no longer change an individual's tax class based on how their familial situation changes: as a result, marriage, divorce, or death would no longer change an individual's tax class.
Referring back to the coalition agreement, the minister confirmed that the Ministry of Finance has set up an internal task force in collaboration with the tax administration. The task force is currently in the process of examining possible routes for the reform.
As for Adehm's other questions, the minister claimed it is too early to speculate on potential implications and conclusions of the reform. However, he confirmed that the government aims to put the project into effect by October 2023.
