Parliament has scotched plans by the government to simplify the tax system and introduce a single value added tax (VAT) rate of 6.5 per cent.
This content was published on
1 minute
swissinfo.ch and agencies
The House of Representatives on Wednesday confirmed its rejection of the proposal which was launched in 2008.
Opponents argued the plan was unrealistic and would lead to extra costs for health and education.
Supporters said a unified rate would create more transparency and reduce the administrative burden.
Switzerland currently has a VAT rate of eight per cent, with special lower tariffs for the hotel sector and for essential consumer goods such as food.
The Swiss Business Federation said the decision harmed the economy, while the hotel industry welcomed the move as a step to boost their competitive edge.
The government now has to draft a new proposal for a two-tier rate system.
You can find an overview of ongoing debates with our journalists here. Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Single VAT rate planned
This content was published on
Finance Minister Hans-Rudolf Merz said the proposal was aimed at introducing a more efficient and transparent system while reducing the administrative burden for companies. The plan, which still needs approval by parliament and voters, is expected to make household products, public transport, cars, fuel and electronic equipment cheaper. However, it would probably prompt price hikes…
This content was published on
The Swiss Business Federation (economiesuisse) championed a flat rate of six per cent with no exemptions on Wednesday. But opponents believe this will hit households hard, particularly if health care attracts the levy. In February Finance Minister Hans-Rudolf Merz listed 50 measures to simplify the VAT system and make it more transparent. His preferred option…
This content was published on
The preferred scenario among those tabled would be to reduce VAT from 7.6 to six per cent and do away with most of the current 25 exceptions. The cabinet opened a consultation procedure on Thursday in Bern, giving interested parties until July 31 to respond to the proposals. Finance Minister Hans-Rudolf Merz called for a…
This content was published on
In recent decades Zug has managed to attract numerous multinational companies thanks to its low tax policy. The downside of the economic growth is rapidly increasing rents, which make it hard for middle class families to find affordable homes. (TSR/swissinfo.ch)
You can find an overview of ongoing debates with our journalists here. Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.