The Swiss government has rejected a proposal to raise inheritance tax on the super-rich because it would damage the country's reputation and cause further losses. About this write Bloomberg agency.
The government's refusal does not mean that the tax will not be introduced - the Swiss will decide on this in a referendum, the date of which will be announced later. But the government's position reduces the chances of introducing the tax.
The idea of a 50% tax on inheritances of more than 50 million francs ($56 million) to raise funds for the fight against climate change was put forward by the Young Socialists political group. They collected 100 signatures, which are necessary to hold a national referendum.
Within the Swiss system of direct democracy, the government had the option of rejecting or supporting the proposal. The government did not support, stating that the introduction of the tax would bring more losses than gains.
Citing calculations by tax authorities, the government said the new tax could bring in more than 4 billion francs. But at the same time, more than three-quarters of potential fiscal revenues will be lost as rich people leave Switzerland. The departure of the rich will also affect other income and property taxes, making the state worse off.
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