The government decided on Wednesday not to extend a carbon dioxide tax on fuels for vehicles after critics blasted the idea earlier this year.
Authorities said they would continue to levy a tax against CO2 emissions from fuels used in homes and other buildings.
Cabinent ministers said the idea behind the tax remains unchanged: to spur a 20 per cent reduction in greenhouse gas emissions from 1990 levels by 2020.
The government will present parliament with a proposal by the end of August.
The measures are part of Switzerland's larger contribution to an international effort to reduce greenhouse gases worldwide.
swissinfo.ch with agencies
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