The Swiss have today approved in a referendum a climate bill aiming to achieve carbon neutrality by 2050. The Alpine country also approved an increase in income tax on large companies. 59.1 per cent of those voting voted in favour of the climate proposal and 78.5 per cent voted in favour of the new tax rate. This is according to the final results published by the Neue Zürcher Zeitung (NZZ).
Climate Bill
The climate bill envisages a gradual reduction in oil and gas consumption without banning them. It also commits Switzerland to producing more renewable energy and encouraging more climate-friendly heat production.
Support for the proposal also dropped ahead of the referendum in response to a hardline campaign by the conservative Swiss People’s Party (SVP), the country’s largest political party. The SVP opposes the bill and before the referendum linked the approval of carbon neutrality to future shortages and a substantial increase in the price of electricity, for example, AFP reports. All other major political parties in the country support the proposal.
Carbon neutrality
Climate change is a major issue for the Alpine country and its mountainous climate. Supporters say the law will help mitigate the devastating effects of climate change, especially the melting of glaciers, which lost a third of their volume between 2001 and 2022.
In addition to carbon neutrality, people also voted on a constitutional amendment to raise tax rates on big business. An overwhelming majority of voters supported a constitutional amendment that would allow large internationally operating groups to be taxed at a rate of at least 15 percent. Switzerland would thereby join an international agreement by the Organisation for Economic Co-operation and Development (OECD) that establishes a global minimum rate for multinational companies.
The minimum tax will apply to groups with an annual turnover of at least 750 million euros (17.8 billion kronor). The Swiss tax administration has estimated that there will be several hundred directly affected groups in Switzerland and that the revenue from the additional tax will be between one billion and 2.5 billion francs (24.3 billion to 60.7 billion kronor) in the first year.
Source: ÄŒTK
