Switzerland announced it will decide whether to introduce a 50% inheritance tax for ultra-high-net-worth individuals through a referendum.
According to Bloomberg, on the 2nd (local time), the Swiss government plans to hold a nationwide referendum on Nov. 30 to ask for opinions on the 50% inheritance tax proposal suggested by the Young Socialists (JUSO) the day before.
This proposal includes a provision that mandates paying half of the amount exceeding 50 million Swiss francs (about 857 million won) in taxes on inherited assets.
In Switzerland, if over 100,000 signatures are collected according to the ‘popular initiative system,’ the agenda will be put to a referendum. The Young Socialists secured the necessary signatures to conduct a referendum on 'introducing a 50% inheritance tax' to secure fiscal resources for climate change response.
Bloomberg analyzed that if this proposal passes the referendum, it could reverse the trend of ultra-wealthy individuals flocking to Switzerland due to the withdrawal of benefits for non-residents in the UK and the introduction of a wealth tax in Norway.
The Swiss Federal Assembly and government are opposing the proposal, stating that its passage could lead to an exodus of the wealthy and a loss of national revenue. Center-right and right-wing political party coalitions, along with economic groups, are also joining forces to campaign against the introduction of the inheritance tax.
They stated in a declaration that "the harsh 50% inheritance tax threatens the existence of family corporations and incurs enormous economic expenses," and "this will bring negative results for all citizens."
Currently, in Switzerland, the top 1% of the wealthy hold 45% of the total assets, and the top 10% of taxpayers bear 53% of income tax revenue.