BASEL: The finance ministry, which had budgeted for a deficit for 2016 of CHF500 million ($517 million) is in fact projecting a surplus of CHF1.7 billion. Despite this, the government will move ahead with planned savings programmes.
The finance ministry put the apparition of an extra CHF2.2 billion down to “special factors”, mainly negative interest rates. It said on Wednesday that negative interest rates had resulted in more companies paying their direct federal taxes early (leading to an extra CHF900 million) or delaying claiming withholding tax (CHF300 million).
In addition, the interest rate situation meant the government saw higher surcharges on government bonds of CHF600 million. Without these factors, the government said it would have been CHF100 million in the red. Switzerland levies taxes at the federal, cantonal and local levels, with cantons setting their own rates.
