It is vital for canton that national tax reform bill is approved

The president of Switzerland, Ueli Maurer, along with other local politicians and representatives from business, was present on the occasion of a discussion evening attended by some 150 arranged by the Zug Chamber of Commerce on Wednesday evening about changes in the law relating to the way contributions to the Old Age and Survivors Insurance scheme (AHV) are made and national tax reforms, which, if not approved, could lead to international-operating companies based here in Zug leaving.

Others also attending the session at the municipality offices in Steinhausen included Peter Hegglin, a former director finance who represents Zug in the Council of States of Bern, Heinz Tännler, the current director of finance in the canton, Jerome Martinu, senior editor of the Luzerner Zeitung and regional editions, who acted as presenter on this occasion, Regula Rytz of the Green Party, who represents Bern in the National Council, and Andreas Lustenberger of the Alternative Green Party, who is a cantonal parliamentarian representing Baar. These can all be seen in the photograph from left to right. Also present, though not included in the photograph, was Markus Frank Huber, who is head of taxes (Europe) at the Biogen International GmbH company of Baar.

With regard to tax matters, at present the EU and the OECD are calling for Switzerland to abandon its policy of allowing cantons to provide fiscal privileges for companies. Should this happen, then it is feared many companies operating internationally here, of which there are a great many in Zug, might move away. In order to prevent this, it has been proposed to reduce the tax thresholds on profits.

However, it is known that left-wing parties are not for such decreases in taxation, which is why they have been offered a sweetener, namely a further CHF 2-billion contribution to the AHV, about which a referendum is to be held on 19 May.

For his part, Ueli Maurer, who is also the head of the Federal Department of Finance, said that a rejection would be disadvantageous to Switzerland, not least as an increase in fiscal competition internationally had been noticed and this could mean that the canton of Zug, which does so much to lure good tax papers, and successfully, too, could have problems if the reforms were vetoed. “While it may seem odd that fiscal policy and provision for old age should be linked, it was in the interests of the economy that the reforms were approved,” he said.

Equally convinced of the importance of the reforms being approved was Tännler, who, like Maurer, is a member of the SVP party. In fact he said it was of “survival importance” for the canton, and essential Zug should continue to be able to offer tax privileges, it being a canton where so many internationally-operating companies were based, and for whom certainty was essential to be able to conduct their business. “Without this, there was indeed a risk they might move away,” he said, something with which Huber agreed, adding how the ability to plan confidently was vital.

For her part, Rytz strongly criticised the linking-up of a political fiscal matter with provision for people in their old age, not least as she thought this latest fiscal reform was not that dissimilar to a previous amendment which did not get through. Lustenberger agreed and felt it was akin to trying to have a law enacted through the back door, adding that while current financial problems with AHV might be alleviated in the short-term, they were sure to re-emerge in years to come. What all those present were agreed on was that AHV was in need of reform.

Summing up, Maurer (shown here in an archive photograph) insisted this amendment provided Switzerland with double security, both with regard to tax and provision for old people. “This is what people need to think about when they go to the polls on19 May,” he emphasised.