Large decrease in fuel revenue for Luxembourg

(ADW) Luxembourg has recorded a decrease in fuel purchase at the pump over the past few years and the Ministry of Finance expects that about 50 million litres of diesel and 180 million litres of petrol less than 2014 to be sold this year. That corresponds to a decrease of 8 and 12 percent respectively.

Studying the graph below, it is evident that the past three years have seen the most drastic drop in fuel purchases.

MPs Diane Adehm and Gilles Roth (both from the CSV) expressed concern that lower sales could lead to significant reduction on fuel tax revenues for the state.

Finance Minister Pierre Gramegna in response to the parliamentary question, pointed out that the budget deficit of about 90 million euros has already been factored into the 2015 budget.

Tobacco sales also fall

Tobacco sales are also likely to decline this year. Among the reasons the Ministry cited lower consumption and increase in VAT. Although the significant drop is probably also due to many smokers going on a spending spree in December 2014, thus making the drop look greater than it really is.

In this area, the Ministry of Finance expects revenue shortfalls of around about ten million euros.

For the state budgets for the years 2015 to 2019, latest developments and trends would be factored in.

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