During
its last sitting before the summer recess, the Liechtenstein
Government adopted a report and application to parliament, on a third
fiscal package (Massnahmenpaket III), which includes measures to
increase minimum income tax.
A
new fiscal consolidation program was deemed necessary due to an
anticipated shortfall of tax revenues in 2013. This has meant that,
despite previous savings, only two of the five basic budgetary
parameters have been met in the Principality's 2013-2016 medium-term
finance plan.
Massnahmenpaket
III provides for additional savings totaling CHF233m (USD248m), of
which CHF52m requires parliamentary approval. The package provides
crucially for new revenues of around CHF39m, and includes plans to
increase the country's minimum income tax from CHF1,200 currently to
CHF1,900, generating approximately CHF16m for the state. A rise in
the tax rates for natural persons, as well as the introduction of a
new 8 percent tax bracket for the country's top income earners, have
already been adopted by parliament, and are expected to further boost
state fiscal income.
On
the expenditure side, the Government aims to significantly cut or
completely abolish certain state contributions. The Government plans
to lower the state contribution to the Financial Market Authority
(FMA) by CHF3m, for example, and to reduce state operating costs.
Liechtenstein's
Prime Minister Adrian Hasler emphasized the Government's commitment
to redressing the public finances, and insisted that this objective
will be achieved in a fair manner, ensuring that everyone contributes
according to their means.
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