Alpine voters ‘hurting’ under ballot box results

Mountain residents argue an initiative to scrap lump sum tax is the latest nationwide vote issue failing to take their interests into account. (SRF/swissinfo.ch)

The initiative to end a preferential tax regime for wealthy foreigners goes to the vote at the end of November. Supporters say a preferential fiscal treatment is unjust. Opponents, like the government and the business community, say a vote to abolish lump sum taxes would harm the economy.

Alpine communities were already hard hit by the decision by Swiss voters in 2012 to limit the construction of second homes.

Many mountain farmers, especially sheep owners, also disagreed with the government’s policy of protecting wolves, bears and lynx.

Now they’re afraid they will once again be subject to new laws that don’t necessarily serve their interests. They fear the scrapping of flat rate taxes may scare off wealthy foreigners living in mountain villages.

Foreigners living in Switzerland can be taxed on a lump sum basis if they are not earning money here. The fee depends on the taxpayer’s annual living expenses rather than on their income and assets. About 5,600 people are taxed in this way. They live mainly on Lake Geneva, in Ticino and in mountain resorts in canton Valais.

Zurich was the first canton to abolish lump sum taxation in 2009. Four others later followed suit.