VATupdate

Proposed environmental tax measures, increased CO2 tax levy

New environmental tax measures proposed under a revised Swiss carbon dioxide law (CO2 law) could affect the profitability of businesses beginning in 2022, when the law is expected to be effective. The legislation is designed to encourage businesses to take action to reduce further their CO2 emissions.

Assuming that the revised CO2 legislation is approved by a voter referendum on 13 June 2021, the new rules may result in potentially increased tax liabilities for businesses operating across various sectors including oil and gas, manufacturing, automotive, and transportation industries or sectors.

An increase in the CO2 tax levy and the various penalties to which companies could be subject in case of failure to comply would be costs that could affect their profitability and challenge their current business model.

Source KPMG

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