New property tax law splits parliament

The battle to end the tax home owners pay is hotting up in Bern.

A small majority in parliament is in favour of changing what’s known as the ‘imputed rental value’ - which is a tax homeowners pay based on a fictitious rental value.

Those opposed say it will create a CHF 2bn hole in the country’s finances, forcing cantons to raise their tax rate.

Backers say it won’t be that much – and cantons can fill the gap by a tax on second homes.

Voters will have the final say at the end of next month. 

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