1989 - 2018 29 years in business Thursday, 19th April 2018

Luxembourg VAT Hike Had Limited Market Impact


Dear Clients, 

 

The Luxembourg Government has said the VAT increases introduced on January 1, 2015.

Have had a limited impact on the prices paid by consumers.

 

Luxembourg hiked each of its VAT rates by two percent on January 1, 2015, establishing a

Headline rate of 17 percent and reduced rates of 8 and 14 percent. The scope of the super

Reduced rate of 3 percent was also reduced.

 

Recent price comparisons of six brands sold in supermarkets before and after the VAT rise

Show an average price increase of just 0.43 percent between November 2014 and February

  1. If the VAT increase had been passed on in full, the overall price ruse would have been

In the region of 0.63 percent, the Government said.

 

Secretary of State for the Economy Francine Closener said that the study shows that less

Than half of the products directly affected by the VAT increase have actually increased in price.

 

Should you require any further clarification, please do not hesitate to contact us at:

info@cardwell-capital.com

 

Kind Regards

Cardwell Advisory Desk
 

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