Swiss voters back minimum tax, climate law
Voters in Switzerland on Sunday approved the introduction of a global minimum tax on businesses and a climate law that aims to cut fossil fuel use and reach zero emissions by 2050, public broadcaster SRF reported. The results showed almost 80 percent of those who voted in Sunday's national referendum backed raising the country's business tax to the 15 percent global minimum rate from the current average minimum of 11 percent, an unusually strong endorsement. "This ensures that Switzerland will not lose any tax revenue to foreign countries," Finance Minister Karin Keller-Sutter said. "It will on top also create legal certainty and a stable framework." The climate law was likewise approved and received the support of 59 percent of voters. In 2021, Switzerland joined almost 140 countries that signed up to an Organisation for Economic Cooperation and Development (OECD) deal to set a minimum tax rate for big companies, a move aimed at limiting the practice of shifting profits to low tax countries. Even with the increase, Switzerland will still have one of the lowest corporate tax levels in the world, and the proposal, estimated to bring US2.80 billion per year in additional revenue, has been backed by business groups, most political parties, and the public. The climate law, brought back in a modified form after it was rejected in 2021 as too costly, has stirred up more debate with those campaigning against it gaining traction in recent weeks. Proponents say the law is the minimum the wealthy country needs to do to prove its commitment to fighting climate change while opponents from the right wing People's Party say it will jeopardise energy security. (Reuters)