The members of the Conference of Cantonal Finance Directors (FDK) and delegations of the Swiss Association of Municipalities (SGV), the Swiss Association of Cities and Towns (SSV) and the Conference of Municipal Finance Directors (KSFD) held an informal exchange of views on the key parameters of the tax proposal 17 (SV17) and agree on the necessity and objectives of the project, which as an overall package is to be driven forward rapidly.

According to a media release of the FDK of April 21, 2017, the members of the FDK and representatives of the municipal level met for an informal exchange of views, the results of which are to serve as a guideline for further work on SV17.

The participants agreed on the following points:

  • Not only companies, but also cantons and municipalities need legal and planning certainty as quickly as possible.
  • The SV17 as a complete package must be advanced rapidly.
  • The financial yield of corporate taxes will require particular attention.
  • The abolition of cantonal tax status is inevitable.
  • They are to be replaced by a combination of tax policy instruments and cantonal profit tax rate reductions. Businesses should continue to contribute to the financing of the communities.
  • A consolidated opinion of the cantons and their municipalities can only, but at least, concern the federal level. The implementation of SV17 at cantonal level can and must be the responsibility of the individual cantons and their municipalities. The cantons shall take appropriate account of the impact on the communes.
  • It is also imperative that the new proposal ensures the financial balance between the Confederation and the cantons and their communes. The Confederation must contribute to the effects of SV17 on the cantons and their municipalities by increasing the cantonal share of direct federal tax to 21.2 %.
  • The effects of SV17 on the cantons and their municipalities are jointly and appropriately supported by the cantons and municipalities.
  • More attention should be paid to counter-financing.
  • The SV17 is to be based on the familiar tax policy instruments, but these are to be more narrowly defined.
  • It is necessary to ensure that the adjustments to the financial compensation provided for in the current proposal take effect in good time.

The press release of the FDK with further information is available here.