Canton of Lucerne plans investments in living and business location
The canton of Lucerne assumes that the OECD minimum taxation will make the location less attractive. It wants to counteract this with 300 million francs annually from 2026. The investments are to be channelled specifically into the location as a place to live and do business.
The canton of Lucerne is planning an investment offensive to promote the location. Due to international tax developments such as the OECD minimum taxation, the canton is “losing its competitive advantage of low corporate profit taxes for large international companies”, explained the cantonal state chancellery in a press release. Specifically, there are fears that affected companies will relocate or limit their investments in the canton. The cantonal government wants to counteract this with targeted investments in the canton as a place to live and do business.
A proposal submitted for consultation by the cantonal government on 10 March envisages investing CHF 300 million a year in a broad package of measures from 2026. “The canton of Lucerne is doing well, so we have the opportunity to invest in our living and economic environment and remain attractive in the long term,” said Fabian Peter, Head of the Cantonal Department of Building, Environment and Economic Affairs, in the press release. “That is the aim of this bill.”
Two thirds of the funds will be used to strengthen the business location. The focus here is on promoting innovation and improving the framework conditions for digitalisation, the availability of business premises and customer-oriented administration. Of the remaining CHF 100 million in favour of the people of Lucerne, the lion’s share of CHF 70 million is earmarked for a reduction in the tax rate for natural persons.