On 22 May 2008, the Prime Minister in his 2008 statement concerning the economic, social and financial situation of Luxembourg, announced plans to reduce the total corporate income tax burden (including surcharge and municipal business tax) to 25.5%. The reduction, which will be carried out in several steps, will be financed by a broadening of the tax base. The first step of the reduction will be effective from 2009. Furthermore, it was announced that the capital duty will be abolished from 2009.