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Switzerland approves a 15% tax for large companies and reduces its CO2 emissions

Date: February 24, 2024 Time: 09:43:07

Switzerland Will Establish A Minimum Tax Rate Of 15% For Large Multinationals, According To Push The Result In Favor Obtained In Referendum Main Government To Allow The Country To Connect With Rules Of The Organization For Economic Cooperation And Development (OECD).

The measure was approved by close to 80% of voters, which will allow Switzerland to apply the reform of the taxation of multinationals adopted by the OECD and the G20 after the financial crisis of 2008 and which provides for a minimum rate of 15% on profits of the groups, whose business figures exceed 750 million euros. In this category, a centenary of Swiss companies and thousands of subsidiaries of foreign groups are remembered.

This reform was essential because, otherwise, the uncollected taxes could have been claimed by the countries where the headquarters of the company involved are located, according to the government, which asked citizens to vote in favor to prevent the money left the country.

It is estimated that the income from the supplementary tax will oscillate between 1,000 and 2,500 million euros the first year, which will be distributed among the Swiss cantons where the tax is lower than what has been established today, which will receive 75%; and the central State (25%).

The left, the unions and some NGOs consider that this project is unequal because the extra income will go to cantons considered rich and with a large number of multinationals, such as Basel-City and Zoug.

Reduce emissions to ‘zero’ by 2050

Swiss voters also accepted a law calling for net zero carbon dioxide emissions by 2050 by referendum, after receiving a 58% “yes” vote, a decision that provides Switzerland with the legal framework to speed up the transition from its economy towards renewable energy.

Among the various measures contained in the proposal, there is an approved package of aid of more than 3,200 million euros in ten years to help replace gas or diesel heating systems with systems that generate fewer emissions, as well as to support the technological innovation of companies. Zero net emissions are equivalent to climate neutrality or carbon neutrality, which is achieved when the levels of CO2 that are emitted into the atmosphere are less than or equal to those that are removed by various means.

This initiative was presented by Parliament as an alternative to two other proposals, one of which was rejected in a referendum in 2021 mainly because it created financing measures for Switzerland to comply with the commitments of the Paris Agreement on Climate Change.

A second project of popular origin called “Initiative for the Glaciers” and that established a ban on the consumption of all types of fossil energy in 2050 was shelved after the authorities considered it too extreme and convinced its initiators to withdraw it while Parliament drew up an alternative, which is what has been approved today.

The new “Climate Law”, as it has been called, leaves aside any prohibition or additional taxes, and is based on incentive measures limited in time and financed through the public budget. Likewise, the State undertakes to achieve climate neutrality from 2040.

Explaining the scope of today’s vote, the Socialist Party considered it “an important success for the climate and security of energy supply” and criticized the far right in Switzerland for having carried out a campaign against the law based “on lies ” . The Swiss extreme right that promoted the alpine vote against were going to be covered by solar panels and wind mills. “A consensual and pragmatic project has been approved, without any measure of imposition for the people, nor any prohibition. The population has recognized that it was good”, commented the socialist deputy Valérie Pillier.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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