Swiss Half-Year Revenues Disappoint
by Ulrika Lomas, Lowtax.net, Brussels
19 August, 2014
A direct federal tax revenue shortfall of CHF1.4bn (USD1.55bn) in the six months to end-June has led the Swiss Federal Council to admit that, in retrospect, its budgeting was much too high.
The Government had earlier anticipated that federal direct taxes would come in CHF1bn below targets, but it has now disclosed that revenues were some CHF1.4bn lower.
It remains optimistic that the nation will post a small surplus by the end of this year, of CHF121m, but this will be due to expenditure cuts of CHF1.9bn. Revenues are expected to drift further from targets, with a CHF2bn shortfall expected.
Revenues from tobacco duty, stamp duty, and casino tax all declined during the first six months of the year, but receipts from other consumption taxes (value-added tax, petroleum tax, import duties, and the heavy goods vehicle tax) outperformed targets. Set off against each other, indirect taxes were down marginally against targets.
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