Cantonal vote LU Companies in the canton of Lucerne will pay less tax in future
In the canton of Lucerne, the equity tax for companies will fall to 0.01 per thousand. People with low incomes and families will also see tax relief. Voters have approved a tax package that will result in high losses for the public sector.
22.09.2024, 15:36
SDA
The canton is expected to lose CHF 56 million in revenue from 2028 and the municipalities CHF 67 million. Several municipalities therefore opposed the bill, while the association of municipalities remained neutral. Not only the SP and the Greens, but also part of the center rejected the tax cuts.
Nevertheless, the referendum on Sunday resulted in a comfortable majority of 67% in favor. 83,436 voted in favor of the bill, while 41,279 rejected it. The voter turnout was 45.57 percent.
The government council announced that it was "pleased to note the clear result". With the Yes vote, the tax attractiveness of the canton and its financial stability will be maintained. He cited "the balanced nature of the tax law revision" as the reason for the large approval.
De facto abolition of the equity tax
One pillar of the tax law revision is the de facto abolition of the equity tax for companies. This will be gradually reduced from 0.5 per thousand to a minimum of 0.01 per thousand by 2028. This is intended to prevent the migration of capital-rich companies.
Thanks to a new degressive social deduction, people with low incomes and families who can claim higher deductions will also see their tax burden reduced. Anyone drawing money from pension benefits will also pay less tax than today.
Money expected from OECD tax
The tax law revision also provides the legal basis for the Lucerne municipalities to participate in the additional income from the OECD minimum tax. Of the expected CHF 400 million in additional revenue, CHF 80 million is to go to the municipalities. This will help the municipalities to cushion the tax losses resulting from the revision of the law, the cantonal government explained on Sunday.
The civic committee, which supported the tax law revision, announced that Sunday's vote was "a good day for Lucerne's middle class and the business location". The bill gives families and SMEs more breathing space and improves the compatibility of family and career.
By accepting the tax law revision, the canton of Lucerne is also positioning itself as an attractive location for research and development, the supporters continued. They were convinced that this would create new tax revenue and jobs and thus prosperity.
Left claims "respectable success"
The SP and the Greens see the result of the vote as a respectable success, as the 33% of votes against was higher than their own share of the electorate. A third of the electorate opposed the "one-sided preferential tax treatment of international corporations and the rich", according to the SP's statement,
The SP is calling on the canton to take the reservations of many municipalities against the tax bill into account. However, the revision of the tax legislation was approved in all municipalities, including the six municipalities (Emmen, Dierikon, Ebikon, Flühli, Pfaffnau and Malters) that had openly opposed it.
The proposal was approved by the narrowest margin of all Lucerne municipalities in Emmen, with 53.4 percent of votes in favor. In Meierskappel, the approval rate was 82.25 percent.
Appeal pending
An appeal by the SP against the cantonal vote is pending before the Federal Supreme Court. It criticized the government council for presenting the tax proposal in a one-sided and non-transparent manner in the voting message.
The bill approved on Sunday is to enter into force on January 1, 2025, despite the pending appeal. The Federal Supreme Court is expected to make its decision next year, the government council explained. However, the taxes for 2025 would not have to be declared until 2026.
