Ticino: June 9 vote on tax reform

As part of its activities, the Lugano Commodity Trading Association (LCTA) works to strengthen the Canton of Ticino’s framework conditions and attractiveness, both for commodity trading companies and their founders and staff. Ticino is one of the Cantons with the highest tax rates for its citizens, the Council of State has now proposed a package of measures in their favor. Voters will go to the polls on June 9, 2024, LCTA recommends a YES vote on Tax Reform.
The Tax Reform aiming to modernize the tax system, extending benefits to different types of families, and lowering the tax burden for employees, can be summarized as follows:
- increase of deductions for business expenses from CHF 2’500 to CHF 3’000 for 2024 and 2025, and to CHF 3’500 beginning in 2026;
- rate reductions for gifts, inheritances or business successions; introduction of a new exempt portion of CHF 10’000; relief measures in case of business succession;
- reduced taxation on pension plan lump-sum payouts to a maximum rate of 3%;
- gradual reduction of the maximum income tax rate from 15.076% to 12% over 6 years;
- linear reduction of all personal income tax rates from 2024 to compensate for the increase in the multiplier to 100% (the reform coincides with the cantonal tax coefficient returning to 100% on January 1, 2024, after being reduced temporarily to 97% in the years 2020-2023).
LCTA backs the initiative “Per evitare aumenti d’imposte a tutti” and recommends its members vote YES.