Zurich, Switzerland – In a striking example of the nation's commitment to responsible economic and environmental practices, Swiss voters have overwhelmingly backed proposals for the introduction of a global minimum corporate tax and an ambitious climate law, according to projections released by the Swiss public broadcaster SRF.

The national referendum, held on Sunday, sought the public’s opinion on two critical issues – aligning the country’s corporate tax rate with international standards and adopting a comprehensive climate law aimed at reducing fossil fuel consumption and achieving net-zero emissions by 2050.

A New Era in Corporate Taxation

Preliminary data based on counted votes indicates that a resounding 88% of the electorate supported raising Switzerland's business tax from an average minimum of 11% to the 15% global minimum rate. This move comes two years after Switzerland joined nearly 140 other countries in signing an Organisation for Economic Cooperation and Development (OECD) agreement to establish a minimum tax rate for large corporations. The agreement was aimed at curbing the trend of profit shifting to countries with lower tax rates.

Despite this increase, Switzerland will maintain its position as one of the countries with the lowest corporate tax rates globally. The tax adjustment is projected to generate an additional 2.5 billion Swiss francs (approximately $2.80 billion) in annual revenue. Business groups, political factions, and the general public widely supported the proposal. Christian Frey of Economiesuisse, a prominent business lobby group, lauded the decision, saying, "No other country is going to have lower taxes either. We want the additional tax revenue to stay in the country, and be used to improve its attractiveness for businesses."

Switzerland, which is home to the offices and headquarters of nearly 2,000 foreign corporations including Google, as well as 200 Swiss multinationals such as Nestle, will see all these businesses affected. However, business groups have shown a positive reception to the prospect of greater certainty despite the possible erosion of Switzerland’s low-tax advantage.

Tackling Climate Change Head-On

On the environmental front, the projections showed that 55% of voters supported the climate law, which was modified and reintroduced after a rejection in 2021 due to cost concerns.

The law is viewed by supporters as the least Switzerland can do as an affluent nation to demonstrate its resolve in combating climate change. However, opponents, primarily from the right-wing People’s Party, have expressed concerns about potential compromises in energy security.

A Forward-Looking Nation

The referendum also indicated voter approval for the extension of certain measures under Switzerland's emergency COVID-19 law, which requires public approval under the country's direct democracy system.

With the Swiss population making clear their stance on corporate responsibility and environmental sustainability, Switzerland sets an example for other nations and takes a significant step in shaping a future founded on fiscal integrity and environmental stewardship.

Final results of the vote were expected to be released later on Sunday.

Exchange rate as of date: $1 = 0.8937 Swiss francs.