Tax breaks harm climate, says Swiss study

The abolition of all tax concessions with a climate impact can reduce Swiss carbon dioxide (CO2) emissions by 2.5 million tonnes per year, according to a study by the Swiss Federal Institute of Technology Lausanne (EPFL) and the University of Lausanne. +Get the most important news from Switzerland in your inbox This corresponds to almost 6% of national greenhouse gas emissions, the EPFL announced on Monday. This would generate tax revenue of CHF4.6 billion ($5.2 billion), of which the largest share, CHF2.9 billion, would benefit the federal government. The study examined tax concessions at federal, cantonal and municipal level. International air traffic, which is exempt from mineral oil tax and VAT, benefits from a subsidy with a strong impact on the climate. Abolishing these tax concessions would reduce CO2 emissions by almost 1.5 million tonnes per year, the report continued. There is also the potential for over CHF1.3 billion in additional tax revenue. + Does Switzerland ...