Import duties on various products including cars, clothes, and household appliances are set to be removed in Switzerland. If parliament approves the plan, the measure will enter into force in 2022.
Economics Minister Guy Parmelin announced the plan on Wednesday after what the government described as a very positive consultation process with stakeholders.
The removal of the duties on a range of industrial products, which also includes bicycles and healthcare products, is part of a range of measures announced last year to tackle Switzerland’s unenviable status as a “high-price island”.
Consumers and businesses will directly benefit, the government said. It also expects that lost state tax receipts will be partly compensated by increased spending and commercial activity.
Tax income on such imports have been on average around CHF500 million ($500.4 million) annually over the past few years; the government expects positive impacts for consumers and businesses to the tune of some CHF860 million.
Though customs duties on industrial products is relatively low, at 1.8% on average, certain products such as textiles (5.6%) and clothing (4%) are more heavily levied.
Industrial goods also include some raw materials and part-built products that enter the country to be completed in Swiss factories. They generally do not include agricultural products, although the government has also pledged to lower duties on selected imports such as bananas and other exotic fruits.
Swiss consumers have long endured having to pay between 40% and 70% more for items in their shopping basket than in neighbouring countries. Companies also complain they are charged more for the same supplies than EU competitors.
Most Read Swiss Abroad
More
Heard the one about the Swiss company installing laugh detectors?
Is artificial intelligence an advantage or a disadvantage for workers?
What is your experience with AI at work? Have you already used it? Has it helped you work better? Or has it caused you more stress, more work or caused you to lose your job? Tell us about your experiences!
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
Precious archaeological vases and coins returned to Italian museum
This content was published on
The Italian authorities have recovered over 2,500 precious ancient coins, vases and small sculptures that had been illegally dug up and sold in Switzerland, Eurojust announced on Monday.
Swiss pay more for magazines and clothes than other countries
This content was published on
For many people living in Switzerland the findings of the Swiss Alliance of Consumer AssociationsExternal link, together with watchdogs in the French and Italian-speaking regions of the country, will come as no surprise. In fact, they confirm the findings of similar studies going back to 2012. The study found that the Swiss “surcharge” makes magazines…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.