TAX NEWS - June 2010

Swiss tax: Swiss Cabinet Plans Uniform Value Added Tax Rate Of 6.2%

ZURICH -- The Swiss cabinet has presented a draft law for a uniform value added tax rate of 6.2%, the Swiss Finance Ministry said Thursday.

The proposal also aims to simplify the country's tax system. The parliamentary debate will start in December at the earliest.

Currently, the regular VAT rate in Switzerland is 7.6% but VAT in the tourism industry and for basic staples is 3.6% and 2.4%, respectively. The draft also calls for a reduction of the number of exceptions that businesses can apply for.

An original plan for a simpler VAT presented two years ago foresaw a rate of 6.1%.

Economiesuisse, a Swiss industry lobby group, welcomed the proposed changes, citing a likely reduction in administrative costs.