Taxes Further tax cuts for Graubünden families and employees

The Graubünden government presented its proposal for a second tax cut on Wednesday. By adjusting tax parameters, natural persons are to pay 4.5 percent less cantonal and municipal tax.

The government announced that it had submitted its draft for the partial revision of the tax law for consultation by October 4. In order to reduce the tax burden on families and working people, the child deductions and the exemption limit for the income tax rate are to be increased.

The deduction for children of pre-school age is to be increased by CHF 1,000 to CHF 7,000, while the deduction for older underage children and children in education is to be increased by CHF 1,500 to CHF 10,500. In addition, the exemption limit for the income tax rate is to be increased by 1,300 francs to 16,800 francs.

The adjustments will lead to an annual reduction in income tax revenue of CHF 20 million for the canton and CHF 18 million for the municipalities.

Tax rate lowered by 5 percent

The Graubünden cantonal parliament had already dealt with the first tax reduction step in December. Parliament approved a 5 percent reduction in the cantonal tax rate for natural persons.

Together with the reductions now presented, this will result in a total annual reduction of CHF 70 million for households. The bottom line is that families and working people will pay five to ten percent less tax.

The tax reduction plans are the result of an initiative put forward by the conservatives in the Grand Council in February 2023. The background to this is the high surplus income that the canton has generated and set aside in recent years. Now taxpayers are to receive back the money they paid "too much".