Federal Council is against the widespread abolition of stamp duties
Tamara Bosch
The Commission for Economic Affairs and Taxes (WAK-N) has proposed further steps to abolish stamp duties. These were rejected by the Federal Council at its meeting on 18 November 2020. However, it supports the demand to abolish the emissions tax. It also wants to abolish the turnover tax on domestic bonds as part of the planned withholding tax reform.
As part of the parliamentary initiative "09,503 stamp duty to be phased out gradually and create jobs" (cf. our contribution of 16 November 2019), the WAK-N has drawn up draft 2, which aims to completely abolish the turnover tax on domestic securities and foreign bonds with a residual term of less than one year. In addition, the levies on life insurance policies are to be waived (loss of revenue CHF 220 million/year).
The Federal Council approves the WAK-N with Draft 1, the abolition of the emissions levy (reduced revenue of CHF 250 million/year). However, for reasons of financial policy, it is proposing that draft 2 not be adopted.
It is expected that the Federal Council will propose the abolition of turnover taxes on domestic bonds in spring 2021 (as part of the withholding tax reform "Strengthening of the debt capital market") and, together with Draft 1, it believes that this will achieve a better cost-benefit ratio.
The detailed statement of the Federal Council can be accessed here, the media release here.
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