Left-wing parties and trade unions said they had handed in the necessary number of signatures to the federal chancellery to challenge to a nationwide vote a decision by parliament last December.
The co-president of the Social Democratic Party, Cédric Wermuth, on Tuesday accused the political right of seeking tax breaks for major companies and rich individuals at the expense of ordinary citizens.
The shortfall in revenue would lead to a growing wealth gap and open the doors for tax cheats in Switzerland and abroad, opponents argue.
A majority of parliament approved the tax reform to strengthen the Swiss finance industry.
The government still has to set a date for the referendum.
Disputed shortfall
Finance Minister Ueli Maurer said the shortfall – initially CHF1 billion ($1.08 billion) then CHF170 million annually – would be compensated in the long term.
However, opponents of the reform say supporters are downplaying the impact of the drop in revenue.
Under current law the Swiss government levies withholding taxExternal link on capital gains, lottery wins, life annuities, pensions and insurance benefits. The statutory rate of Swiss withholding tax is 35%.
The referendum is the latest in a series by the political left to oppose the government’s and parliament’s plans for tax reforms.
In February a majority of Swiss voters followed the left in rejecting plans for the abolition of stamp duty.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
Swiss authorities announce cost-cutting in asylum sector
This content was published on
The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
This content was published on
The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
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
Swiss stamp duty reform dismissed at ballot box
This content was published on
Voters have thrown out a plan to abolish stamp duty on equity capital for Swiss companies, snubbing the government and parliament.
This content was published on
Left-wing parties and trade unions have gathered double the amount of signatures needed to challenge pension reform plans to referendum.
This content was published on
Switzerland will miss a deadline to reform 'harmful' corporate tax practices after voters reject a proposed overhaul in a referendum.
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.