In the News

Tax Breaks Approved

In a nationwide vote in February 2008, tax breaks for small and medium-sized enterprises (SMEs) were narrowly approved. The fiscal reform proposal passed with a margin of just one per cent, or around 19,000 votes.

The main centre-right parties as well as the government and the business community said the fiscal reform would give a boost to the economy by encouraging investments and creating jobs. Supporters of the reform argued that SMEs, which form the backbone of the Swiss economy, stand to benefit from a set of planned measures aimed at reducing the financial and administrative burden for companies.

Opponents of the tax breaks had argued the reform would result in a shortfall in revenue for social security schemes because it offered shareholders a reduction in tax on dividends and went against the principle of fairness.