Free trade zones for Luxembourg?

(JB) The government is in discussions to create free trade zones in a bid to encourage industry growth in the Grand Duchy.

The Chambre des Deputés will vote on the proposal on Thursday but industry chiefs are optimistic that the proposal will be pushed through successfully.

If it gets the green light, the measure will provide a large incentive for existing and potential businesses, who will be attracted by the suspension of VAT.

According to the bill, VAT exemption will cover storage firms, particularly third party operators, packaging and shipping firms as well and may at some point include stock market activities.

The first zone is planned for Findel, in the secure enclosure of the airport and will cover its extensive infrastructure and freight sector.

Finance minister Luc Frieden said: “The VAT suspension is expected to contribute to the development of distribution activities in the national territory.“

Giving its view on the measure the State Council requested only that special attention be paid to the prevention of money laundering and of trafficking of culturally important property.