2023-12-05 13:27:00
The Neuchâtel Grand Council accepted on Tuesday by 53 yes, 44 no and 2 abstentions to reduce taxes by 1% of individuals in 2024. The left, which preferred a correction of cold progression, opposed it.
“We are in a context of great uncertainty, which is why we chose an option which is not radical and definitive,” declared the State Councilor in charge of finance, Laurent Kurth. “We are looking for balance.”
The objective is to prevent “the fiscal scarecrow from once once more becoming the dominant thesis which prevents us from talking regarding all other subjects. The desire is not to be left behind in the tax competition with neighboring cantons,” added Laurent Kurth.
The Council of State proposes to reduce taxes by 1% for each category of the current scale from 2024 for two tax periods. Secondly and as long as revenues allow, it is planned to once once more lower the tax rate for each category of the scale by 1% for the 2025 financial year.
For 2024, the 1% reduction in the personal income tax rate represents a cost for the canton of 6.2 million francs and 3.5 million for the municipalities.
Cold correction refused
The right supported the Council of State’s project. “The canton must ensure its taxation and its attractiveness. Those who make the most efforts in terms of solidarity must benefit from the good evolution of revenues,” declared PLR Cédric Haldimann. “We would have preferred a tax cut of 4%. The Council of State’s project remains a timid but positive signal.
Instead of a tax increase, the PS preferred the “fairer and more favorable for the middle class” option of a 1.5% correction of the cold progression, linked to inflation. “No reason justifies a linear tax cut, which increases inequalities,” declared Romain Dubois. This amendment was refused by 51 no, 47 yes and 1 abstention.
The VertPOP group was also opposed to a tax cut. “It’s the opening of Pandora’s box of crumbling tax revenues while there is no shortage of challenges,” explained Popist Armin Kapetanovic. /ATS
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