Swiss voters look set to narrowly reject a proposal to cut a tax on company fund raising, a blow to the government as it tries to boost the country’s business-friendly appeal.
Polls ahead of Sunday’s plebiscite show 53% are likely to oppose a new law abolishing the so-called new issues tax, with just 39% in favor. While 53% is a small majority, such Swiss surveys are generally accurate about results.
The government says ending the levy, which amounts to 1% of any capital raised, would reduce investment costs and have a positive effect on jobs growth.
Switzerland is pushing to maintain its pro-business status after it agreed to a global deal to implement a minimum tax rate on profits of 15%. That will raise payments for multinationals in the country from 2024, though that plan also needs to go to a national vote.
“It might be a well-placed symbolic move to improve the financing conditions for companies right now,” said Martin Eichler, chief economist at BAK Economics AG. “Apart from the economic advantages and the opportunity to attract high-qualified jobs to Switzerland, it would demonstrate to companies the willingness of Switzerland to stay attractive for them.”
The levy adds 250 million francs ($270 million) to coffers annually, according to official estimates.
