A proposal to replace VAT with a green tax on petrol, gas, coal and uranium was rejected by the vast majority of Swiss voters in a referendum on March 8.
The proposal, which was tabled by the Green Liberal Party of Switzerland, was supported by the World Wildlife Fund and Greenpeace. But 92% of Swiss voters rejected it. The proposal was also widely opposed by the federal government, parliament and the business community.
“It was obviously too big a leap. But I’m convinced that the initiative helped put the issue of an ecological tax reform on the political agenda,” said Martin Bäumle, president of the Liberal Green Party.
According to Tiana Angelina Moser, a Liberal Green MP, efforts must continue to reduce carbon emissions. She said the result of the referendum shows there is economic uncertainty and Swiss voters hesitated to push through such a major tax reform.
Finance Minister Eveline-Widmer-Schlumpf said that approval of the green tax “would have posed a major challenge for the government and the country’s social security system”.
“The majority of people are sensitive towards energy issues, but prefer a realistic step-by-step approach,” added the minister.
VAT is 8% for most goods in Switzerland and revenue from this tax exceeds €20bn, which is more than a third of the country’s annual budget.
In Switzerland, citizens have the right to challenge any law tabled in the parliament or to propose a change to the Constitution. To do so, they can call for a referendum, which requires at least 50,000 signatures. Or they can collect 10,000 signatures to put forward a so-called Citizens Initiative.