New taxes in tourism (2) : Switzerland ready to tax travelers in transit
Taxing tourists is an easy way to bring money to national, regional or even city authorities without hurting local populations. Switzerland is no exception with the country now looking at introducing a tax for visitors in transit only.
Any travelers from Southwestern France via Lyon to Austria or from Baden-Württemberg to Italy would typically pass through Switzerland. Traffic jams near the Gotthard Tunnel or along the Geneva Lake on the motorway linking Geneva to Lausanne testify of the role played by Switzerland as a transit country.
To ease congestion, some Swiss lawmakers wish to introduce new transit fees for foreign tourists who cross the country without staying overnight. The new tax would be in addition to the annual highway vignette, which costs about €43 ($47). And which is already collected as a transit fee for using Switzerland’s infrastructure. A motion from various Swiss parties was approved for a due tax for a vehicle “entering Switzerland from one neighboring country and exits into another neighboring country without a significant stay in the country.”
Depending on the time of day, day of the week and traffic density, the levy would vary. The notion of “significant stay” should also be clearly defined. The fee would be collected automatically by license plate scans at the border.
Unanimous endorsement of Swiss cantons
A motion about this potential transit tax for foreign cars, presented by two cantons (Tessin and Uri), was unanimously approved last week by the Council of States (one chamber of parliament representing all the Swiss Cantons). Representatives of the cantons relied on Article 84 paragraph 1 of the Swiss Constitution. It obliges the Confederation to protect the Alpine region from harmful effects of transit traffic and to limit its burden to a level harmless to people, animals, flora, and habitats.
While endorsed at the Council of States, the motion now still needs approval in the National Council (the other chamber) and to be reconciled with the Federal Council (executive) views.
The latter has so far expressed negative statements about such a motion. Switzerland Federal Council estimates that such a levy would generate legal issues with the EU, constitutional issues within the country and also administrative problems to implement it. It would also generate considerable costs to activate it.
It’s likely that this motion will come to a conclusion in 2026 with a public vote (referendum). It would mean that travelers might have to rediscover the beauty of Swiss landscapes and hospitality, if they don’t want to pay this tax !
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