The voters in Switzerland extended their overwhelming support to increasing the global minimum tax rate to 15 per cent for multinational corporations, as 79 per cent of people voted in favour, showed projections published shortly after polls ended. The polls were carried out by gfs.bern institute.
The vote will permit an amendment to the constitution so that the country can join an international agreement, mooted by the Organisation for Economic Co-operation and Development (OECD), for imposing 15 per cent of the global minimum tax rate for multinational corporations.
The plan is to introduce the new rate on all Swiss-based companies which have a turnover above €750 million. Until now, some of the lowest corporate tax rates across the world have been imposed by many of the country’s 26 cantons, for which they gave reason for the need to attract more businesses in the face of high location costs and wages.
The government of Switzerland has estimated that the revenue generated from the supplementary tax would amount to between 1.0 and 2.5 billion Swiss francs in the first year.
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Swiss voters back net-zero climate law
The people in Switzerland, keeping in mind the drastic impact of global warming on their rapidly melting glaciers, on Sunday supported a new climate bill which is aimed at taking the country towards carbon neutrality by 2050, as per the early estimates.
The gfs.bern institute’s initial projections showed that 58 per cent of Swiss people voted yes in the referendum on the new law. If the law comes into force, the country will need to cut down its dependence on imported gas and oil, scale up the use and development of greener and homegrown alternatives.
In the opinion polls held recently, strong but slipping support was indicated for the climate bill amid a campaign around economic ruin and electricity shortages, which was infused with anxiety and driven by the populist right-wing Swiss People’s Party (SVP).
The supporters had stated the “Federal Act on Climate Protection Targets, Innovation and Strengthening Energy Security” is required to ensure energy security.
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They added that it will help address the issues arising from climate change which has been highlighted by the drastic melting of glaciers in the Swiss Alps, resulting in it losing a third of its ice volume between 2001 and 2022.
Around three-quarters of its energy is imported by Switzerland as all the oil and natural gas consumed by the people come from abroad. Initially, climate activists had wanted to place a total ban on all gas and oil consumption in Switzerland by 2050.
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