- Swiss get back 15% minimum trade tax
- Minimum tax supported by business groups
- The climate law rejected in 2021 is passed
- Expansion of COVID-19 law receives approval
ZURICH, June 18 (Portal) – Voters in Switzerland on Sunday approved the introduction of a global minimum tax on companies and a climate law aimed at reducing fossil fuel use and achieving zero emissions by 2050, the publicly reported -legal broadcaster SRF.
The results showed that nearly 80% of those who voted in Sunday’s national referendum supported raising the country’s business tax rate from the current average minimum rate of 11% to the global minimum rate of 15%, an unusually strong approval.
“This ensures that Switzerland does not lose any tax revenue abroad,” said Finance Minister Karin Keller-Sutter. “In addition, legal certainty and stable framework conditions are created.”
The climate law was also passed and received the support of 59% of the electorate.
In 2021, Switzerland joined nearly 140 countries that have joined an Organization for Economic Co-operation and Development (OECD) agreement to set a minimum tax rate for large companies. This move is intended to limit the practice of shifting profits to low-tax jurisdictions.
Even with the increase, Switzerland will still have one of the lowest corporate tax levels in the world, and the proposal, which is estimated to generate 2.5 billion Swiss francs ($2.80 billion) in additional revenue a year, was supported by corporate groups, mainly political, supporting parties and the public.
The climate law, reintroduced in modified form after being rejected in 2021 as being too costly, has sparked further debate in recent weeks, with opponents of the law gaining traction in recent weeks.
Supporters say the law is the least the wealthy country needs to do to show its commitment to fighting climate change, while opponents from the right-wing People’s Party say it jeopardizes energy security.
In Sunday’s referendum, voters also approved the extension of some provisions of the country’s COVID-19 emergency law, which are required in Switzerland’s system of direct democracy, in which laws are put before the public for a vote.
Switzerland is home to the offices and headquarters of around 2,000 foreign companies, including Google (GOOGL.O) and 200 Swiss multinationals such as Nestle (NESN.S). Although everyone would be affected, business groups welcomed the greater certainty the new tax would bring, even if Switzerland lost some of its low-tax incentive.
“No other country will have lower taxes. We want the additional tax revenue to stay in the country and be used to make it more attractive for companies,” says Christian Frey from the Economiesuisse lobby group.
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($1 = 0.8937 Swiss francs)
Reporting by Noele Illien, John Revill and Emma Farge; writing by Tomasz Janowski and Noele Illien; Edited by Frances Kerry, Hugh Lawson, Sharon Singleton and Giles Elgood
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