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Switzerland is pressing ahead with plans to eliminate import tariffs on industrial goods, a bid to combat the country’s high prices.

The government will submit a draft law to parliament after getting positive feedback on its proposal, which it initially presented a year ago. Goods like cars, bicycles, shoes and textiles would be affected.

The move will allow companies to benefit from lower input costs and therefore enhance profitability, the government said Wednesday.

“Trade ties will become more efficient overall and competition will be improved,” it said. “Given the positive macroeconomic effects of the measure, the resulting revenue shortfall is manageable.”

Should parliament approve the measure, the change will come into effect in 2022.

To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss, Brendan Murray

©2019 Bloomberg L.P.

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