Campaigns to abolish church tax on companies have
triggered a wide-ranging debate on state support for religion in
Switzerland.
The future of the tax is emerging as a particular bone of
contention between conservatives and liberals in the Roman Catholic
Church.
In most of Switzerland, individuals registered as church members pay a direct tax on their income for the upkeep of the Protestant and Roman Catholic churches.
In 20 cantons, the church tax is also collected from legal persons, which means essentially businesses.
Youth wings of the centre-right Radical Party and rightwing Swiss People’s Party have been campaigning at cantonal level to have the church tax on business abolished.
They argue that the tax is “a relic of the Middle Ages”, and that cantons that impose such a tax are less competitive on corporate tax than they could be, especially with other countries in Europe.
If the tax were to be abolished, the proponents argue, it would provide significant financial relief for businesses, resulting in more investment and jobs.
A popular initiative to abolish church tax on business is now gathering signatures in canton Nidwalden, and cantons Graubünden and Zurich will be voting on initiatives next year.
The Federal Court – the highest court in Switzerland – has repeatedly ruled that the tax is legal, René Pahud de Mortanges, law professor at the University of Fribourg, told swissinfo.ch.
He recently co-authored a study of church tax on legal persons in the different cantons of Switzerland.
However, he conceded that change may come at the ballot box.
“The court has also said that if the tax is found to be no longer appropriate for political reasons, it will be up to the governments of the cantons to make changes. The cantonal initiatives to abolish the tax have to be seen in this context: they propose to change the legal situation in the cantons by political means.”