In line with a decision by the Senate, the House of Representatives on Thursday threw out a proposal by canton St Gallen to ban lump sum taxation.
The house also voted down a proposal by a parliamentarian from the centre-left Social Democratic Party to set limits for such tax breaks.
Supporters of a ban argued lump sum taxation was in breach of the constitution, while opponents warned against giving up a handy method which gives Switzerland a competitive edge and attracts welcome taxpayers.
They also said the government was preparing moves for a reform.
About 5,000 foreigners benefited in 2008, resulting in revenue of SFr578 million ($647 million).
A leftwing party, the Alternative Left, says it will launch an initiative next month to abolish lump taxation across the country.
Voters in canton Zurich decided to end such tax breaks in 2009. Ballots are also scheduled in other cantons.
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.
Read more
More
Cabinet defends controversial lump sum tax
This content was published on
However, it proposes increasing the minimum tax rates in line with recommendations of the 26 cantons, which have wide-ranging fiscal autonomy. The amendment would make the system more transparent and less discriminatory, according to a finance ministry statement. The cabinet rules out the abolition of the lump sum tax, saying it helps boost Switzerland’s competitive…
This content was published on
The controversial lump-sum taxation scheme, which allows cantons to set preferential rates for wealthy residents that settle in Switzerland from overseas, has come under increasing pressure both at home and from abroad. Some 5,000 people in Switzerland currently benefit from a system that ignores income and wealth, but typically sets taxes at around five times…
Zurich hits rich foreigners, like Tina, in the pocket
This content was published on
The move may prompt rich individuals already living in Zurich, such as pop diva Tina Turner, Russian business tycoon Viktor Vekselberg and German milk baron Theo Müller, to take their homes and income elsewhere. Some 52.9 per cent of the electorate – or 216,000 people – backed an initiative from the leftwing Alternative List political…
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.