The House of Representatives on Tuesday agreed to grant urban regions, including Zurich, Geneva, Basel and Zug, a reduction in contributions to the common cantonal coffer, while rural and notably mountain regions are set to lose revenue of up to CHF500 million ($500 million) annually.
The other parliamentaryExternal link chamber, the Senate, is expected to approve the reform later this year.
Supporters of the reform argued that cities, with their growing population, bear a greater financial burden than rural areas, notably spending on welfare, education and healthcare.
The updated so-called fiscal equalisation schemeExternal link is due to come into force in 2020, ending years of wrangling between the different cantons and the federal government.
The scheme, which was introduced in 2008, is seen as a cornerstone of Switzerland’s federalist system, granting the 26 cantons wide-ranging autonomy notably on fiscal matters.
Switzerland levies taxes at three separate levels: federal, cantonal and local. The 26 cantons set their own tax rates while the more than 2,200 municipalities can levy taxes either at their own discretion or based on basic cantonal tax scales.
More
More
Swiss Politics
Swiss federalism changing with the times
This content was published on
The Swiss model of democracy has given way to a more centralised system, researchers argue in a new book.
Several people in custody after Swiss national kidnapped in France
This content was published on
Seven people are in French police custody as authorities investigate the kidnapping and illegal detention of a young Swiss man, who was freed on Sunday.
This content was published on
The Swiss job market deteriorated slightly last month. The number of unemployed rose by almost 3,000 (+2.3%) month-on-month to 132,105.
This content was published on
Swiss Post has launched a stamp featuring an image of the Duck toilet cleaning dispenser, as part of a series honouring Swiss inventiveness.
Switzerland and France sign accords to manage shared waters
This content was published on
Switzerland and France have signed two agreements on the management of the waters of the Rhône River and Lake Geneva, almost 14 years after discussions on the subject began.
Switzerland to press on with Israeli drone procurement after some adjustments
This content was published on
The Swiss defence ministry has decided to reconfigure the procurement project for six Israeli ADS-15 drones and dispense with certain functionalities.
One Swiss national among the injured in Lisbon funicular crash
This content was published on
The death toll from the derailment of a funicular railway in Lisbon was raised to 17 on Thursday morning after two people died from their injuries overnight, authorities said.
Dancer Thomas Hauert receives Swiss Grand Prix for Performing Arts
This content was published on
Thomas Hauert, a dancer and choreographer from Solothurn, has been awarded the 2025 Swiss Grand Prix for the Performing Arts, also known as the Hans Reinhart Ring, worth CHF100,000.
Natural hazards the greatest uncertainty for Blatten’s future
This content was published on
On Wednesday, cantonal and municipal authorities presented a roadmap for the reconstruction of the Swiss village of Blatten, which was destroyed by a landslide last spring.
Swiss footballer Embolo sentenced for threatening behaviour
This content was published on
National footballer Breel Embolo has been sentenced to a conditional fine for making multiple threats during an argument, the Basel Court of Appeal confirmed.
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
Federal taxes: billions of francs and muted opposition
This content was published on
Swiss voters will have the final say in March on the government’s right to tax its citizens and companies, including value added tax (VAT).
Historian casts doubt on Swiss reverence of direct democracy
This content was published on
The symbolic value of citizen’s participation in decision-making should not be underestimated, but its importance is often exaggerated in Switzerland.
This content was published on
The centre-left Social Democratic Party in May 2008 submitted an initiative that, if passed, would force all cantons to adopt the same tax system. The Swiss Business Federation (economiesuisse) believes this would damage the economy. The Federation recruited a noted academic to produce a dossier outlining the benefits of the current system. The findings of…
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.