As calls for an expat or immigrant tax in Switzerland continue to grow, another proposal has added yet more fuel to the fire. The new plan, submitted by FDP. The Liberals, would see new arrivals pay a special income tax for 11 years.

New proposal would see expats pay extra tax for 11 years

In a motion announced over the weekend, the FDP argued that holders of residence permits should pay a special immigration tax. This would be a 3 percent income tax, roughly the same charge that those who refuse or are declared ineligible for national service have to pay. Experts from CH Media estimate the plan would bring in 1 billion francs a year.

New arrivals would have to pay the extra fee for 11 years after moving to Switzerland. However, the plans would not affect those who already live in the country, and would only be enacted should Switzerland reach a total population of 9,5 million - something that is predicted to happen in the next 25 years, largely due to migration.

Why is an immigrant tax being debated in Switzerland?

The FDP’s immigrant tax is a counter-proposal to the No 10 Million Switzerland! or Sustainability Initiative from the Swiss People’s Party (SVP). This means that if the FDP's plan is approved by parliament and the SVP's proposal is defeated at referendum, the former would be enacted.

Under the SVP’s plan, the Swiss government would have to take significant steps to curb migration if the population rises above 9,5 million before 2050. How this would be achieved, given Switzerland’s free movement agreements with the European Union, remains to be seen. 

With the Swiss media predicting that the Sustainability Initiative has a fair chance of being approved by voters, the FDP, Centre and Green Liberal Parties are looking to offer a counter-proposal that would water down the plan’s goals while satisfying those who favour it. Indeed, fear of the SVP winning the vote led to the development of other so-called “immigrant taxes”, from a one-off fee of half a year’s salary and a 50.000-franc entry charge, to a 10.000-franc tax on companies, and the one being proposed now.

Speaking to Blick, FDP National Councillor Simon Michel argued that a broad coalition was needed to defeat the SVP, adding that "it is important that there is a real regulatory effect on immigration and that the measure benefits the Swiss population as a whole." He said that an expat tax would provide funding to crucial services while not penalising businesses that are “dependent on skilled workers.”

Opponents warn against kowtowing to SVP ideas

While the Centre and Social Democratic Parties are yet to comment on the plans, the FDP proposal has already been firmly rejected by the Green Party. Leader Lisa Mazzone argued that it would be a “bureaucratic monster”, adding that Switzerland should not be imposing fees on new arrivals while it also faces an acute shortage of workers. 

Her party, and the Federal Council, believe that the SVP’s referendum can be defeated without a counter-proposal. For its part, the government has announced plans to accelerate asylum application processes and integrate more women into the workforce.

Speaking back in September, SP National Councillor Priska Seiler Graf argued that it would be unfair for expats to pay a penalty for not completing national service, given they are not afforded the same rights as citizens. Others note that expats already pay more to the Swiss state than they receive in benefits.

Naturally, the SVP are also not warm towards an immigrant tax, with chairman Marcel Dettling telling Blick that it would not address the fundamental impacts of rising migration, namely the ongoing housing crisis.

Thumb image credit: Anton Gvozdikov / Shutterstock.com