Swiss voters in a referendum on Sunday appeared to overwhelmingly approve proposals to introduce a global minimum tax for companies and a law aimed at cutting fossil fuel use and achieving zero emissions by 2050, according to forecasts made on Sunday by the public. TV channel SRF, Reuters and AFP.

Forecasts based on the number of votes counted showed that 88% of those who voted in Sunday’s national referendum supported raising business tax to the global minimum rate of 15%, compared to Switzerland’s current level of 11%. Also, 55% of voters supported the climate law.

The final results of the vote are expected on Sunday evening.

In 2021, Switzerland joined nearly 140 countries that joined the Organization for Economic Co-operation and Development (OECD) agreement to set a minimum tax rate for large companies, a measure aimed at curbing the practice of shifting profits to low-tax countries. But even with the increase, Switzerland will still have some of the lowest corporate tax rates in the world, and the proposal, which is estimated to bring in additional revenues of 2.5 billion Swiss francs ($2.80 billion) a year, has been backed by business. groups, most political parties and the general public.

Switzerland is home to the offices and headquarters of approximately 2,000 foreign companies, including Google, as well as 200 Swiss multinationals, including Nestle. While it will affect all votes, business groups have welcomed the greater degree of certainty the new tax will bring, even if Switzerland loses some of its reputation as a low-tax country. “No other country will have lower taxes. We want the additional tax revenue to stay in the country and be used to make it more attractive for business,” said Christian Frey of the Economiesuisse lobby group.

Controversy in a country that risks running out of glaciers

On Sunday, the Swiss voted overwhelmingly to become carbon neutral by 2050 in the Alpine country, where the expected disappearance of its iconic glaciers is the epitome of devastating climate change. The climate law, amended after it was initially rejected in 2021 as too expensive, has instead sparked more controversy, with campaigns against it intensifying in recent weeks. Supporters say the law is the minimum the country should do to show its commitment to fighting climate change, while opponents from the right-wing People’s Party say it will jeopardize energy security.

The draft law provides for a gradual reduction in the consumption of oil and natural gas, but without a ban on this. At the same time, Switzerland will need to generate more renewable energy, such as hydroelectricity and photovoltaics, and support more green heating systems, such as heat pumps.

Switzerland and its mountain ecosystem are particularly affected by climate change. The situation of Swiss glaciers is dramatic and, according to experts, they are doomed to disappear.

Energy is a pressing issue for the country, which relies on imports for 75% of its oil and gas needs. This fragility was sharply emphasized by Russia’s invasion of Ukraine. The Federal Climate Protection, Innovation, and Energy Security Goals Act aims to reduce this dependence on foreign energy sources while reducing greenhouse gas emissions without imposing bans or new taxes.

How to get people off fossil fuels

In fact, this text is a counter-proposal to a popular initiative known as the “glacier initiative” that climate activists submitted in 2019. The initiative provided for a ban on the consumption of fossil fuels from 2050. The government and parliament they considered this too radical and preferred to focus on incentives, including financial ones, to reduce the consumption of fossil fuels as much as possible, without banning them.

Their plan involves allocating up to 200 million francs (roughly the same in euros) every year for ten years to help homeowners switch to green heating systems. Industries that invest in innovative technologies, such as those capable of filtering CO2 from the air, will also receive support.

The UDC says the bill, which it describes as an “electricity waste bill,” will eventually ban diesel, gas and gasoline as energy sources, jeopardizing energy security and increasing household electricity consumption. bills It is not the first time that the UDC opposes climate legislation. In 2021, the party narrowly rejected a bill to reduce greenhouse gas emissions.

(Source: News.ro)