Swiss companies should pay immigration tax on foreign works, boss says

In September, Swiss MPs have approved the plan of imposing a 4,000-franc tax on EU nationals who move to Switzerland.

The idea behind this move – supported by the Federal Council - is that as new immigrants benefit from Switzerland’s public infrastructure and services without having contributed to their funding, they should pay for using it.

READ MORE: Switzerland's Council of States to push forward with 4,000-franc ‘immigration tax’ 

Now an entrepreneur Fredy Gantner, who owns a private equity company in Zug, has proposed an alternate version of this plan.

How does it differ from the one laid out by the legislators and the Federal Council?

Unlike the proposed fee to be paid by immigrants themselves, Gantner wants employers to contribute toward the costs associated with immigration. 

Concretely, companies which hire EU nationals would have to pay a contribution to the state coffers, with the amount based on the employee’s salary.

This responsibility should be placed on employers  because companies are "primary beneficiaries of immigration," he said.

For instance, for an annual income of 75,000 francs, the total amount would reach 15,000 francs, spread over five years - so 5,000 francs a year.

For higher wages, the contribution would rise accordingly: for a yearly salary of 300,000 francs, the tax would amount to 225,000 francs, paid out in five annual instalments.

Based on these calculations, this measure would generate approximately 1.35 billion francs per year, Gantner said.

Some of this windfall should go into state coffers, while a portion should be distributed to the population - specifically to low-income households, he pointed out.

Could this idea gain traction?

Of the two versions, the one proposed by legislators and backed by the Federal Council has a higher chance of succeeding.