Swiss Gov't Refuses To Tax Profits Driven From Ukraine Conflict

Members of the Swiss government's economic commission have rejected a proposal to tax huge profits made by some Swiss companies as a result of the conflict in Ukraine, the parliament said on Wednesday

GENEVA (UrduPoint News / Sputnik - 24th May, 2023) Members of the Swiss government's economic commission have rejected a proposal to tax huge profits made by some Swiss companies as a result of the conflict in Ukraine, the parliament said on Wednesday.

"By a vote of 15 to 10, the commission proposes rejecting the initiative put forward by national adviser (lawmaker) Balthasar Glattli, which seeks to impose a temporary Federal windfall tax on profits made as a result of the war in Ukraine," the parliament said in a statement.

The rejected initiative proposed imposing a tax on Swiss companies that took advantage of the sharp rise in global commodity prices to make significant profits, given that 80% of Russian exports are processed through Switzerland.

"Most commissioners believe that such a tax would significantly disrupt market mechanisms and lead to undesirable side effects. In addition, the commission notes that the taxation of windfall profits is technically unlikely to be applicable," the statement added.

Earlier in the month, Hungarian Prime Minister Viktor Orban said that arms manufacturers, speculators and major Western economic circles, which make record profits, were interested in the continuation of the conflict in Ukraine.