Following the European Union’s adoption of a 16th sanctions package against Russia, Switzerland has expanded its own sanctions list. This aligns Switzerland with the EU’s response to the ongoing conflict in Ukraine. The updated sanctions include additional individuals, ships, and banks, and came into effect immediately. Further EU measures are under review for potential adoption by the Swiss government.
The Swiss government rejected a Young Socialists’ initiative to impose a 50% inheritance tax on fortunes exceeding CHF50 million, citing potential negative economic consequences. The government’s statement argued that the tax would harm Switzerland’s reputation and lead to a significant exodus of wealthy individuals, ultimately reducing overall tax revenue. While the initiative garnered over 100,000 signatures, triggering a future public vote, the government’s opposition significantly diminishes its likelihood of success. The government’s assessment projects a net loss of tax revenue due to capital flight.
John Q. Hosedrinker