by Individuals can opt out of church tax in most cantons. But companies rarely can, despite many having no connection with a church or a religion. The topic has been a hot political subject for a long time in Switzerland and came back under the spotlight this week when the canton of Bern discussed making it optional, reported SRF. © Nuvisage | Dreamstime.comIn 2021, the canton of Bern collected CHF 37 million in church tax from companies, so a change in rules would be felt. A key criticism of the current system centres on choice. If individuals have the freedom to opt out of the tax then why not companies? Only five cantons have done away with the tax: Geneva, Basel-City, Aargau, Schaffhausen and Appenzell-Ausserrhoden. Another two, Ticino and Neuchâtel, have made it optional. The
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Individuals can opt out of church tax in most cantons. But companies rarely can, despite many having no connection with a church or a religion. The topic has been a hot political subject for a long time in Switzerland and came back under the spotlight this week when the canton of Bern discussed making it optional, reported SRF.
In 2021, the canton of Bern collected CHF 37 million in church tax from companies, so a change in rules would be felt.
A key criticism of the current system centres on choice. If individuals have the freedom to opt out of the tax then why not companies? Only five cantons have done away with the tax: Geneva, Basel-City, Aargau, Schaffhausen and Appenzell-Ausserrhoden. Another two, Ticino and Neuchâtel, have made it optional. The remaining 19 have kept it compulsory for companies, although Vaud and Valais levy company church tax by stealth. These cantons allocate the money out of the corporate tax pool rather than including it in tax assessments. In Vaud, there is also no way for individuals to opt out church tax.
There are also democratic arguments against the current system. Is it fair to use collective money to fund organisations that many residents have no affiliation with?. 38% of the population of Bern does not belong to the churches receiving these funds. In addition, the system creates a financial connection between church and state, which is at odds with the separation of the two institutions and the politics of religious neutrality.
The inherent lack of freedom in the current system can have perverse outcomes. Sometimes churches end up politically attacking the companies forced to fund them.
The main counter argument in favour of the tax centres on the work churches do. Churches provide services to society, much of it involving volunteers, which increases the impact. If cantonal governments had to take on these tasks instead they might end up spending more. Last year, the cantons of Thurgau and Schwyz discussed making company church tax voluntary but ultimately, for this reason, decided to keep it. The cantonal parliament of Bern took the same decision.
More on this:
SRF article (in German)
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