The Neuchâtel Grand Council prefers to lower the tax coefficient rather than taxes – rts.ch

“The tax bill is an important part of the purchasing power of the middle class. The population wants the tax burden to decrease. We must also not fall behind the other cantons,” explained Crystel Graf.

The State Councilor in charge of Finance is surprised by the revolt of the municipalities because the government had already announced last year and repeated in April that it wanted to propose a new reduction of 1% for 2025 if the result permitted it. The reduction would have had an impact of 5 million francs, to be distributed among the 27 municipalities. For the canton, the cost was 6.2 million.

Faced with the revolt of the municipalities, the VertPOP group proposed not to touch the tax scale for individuals, but rather to lower the cantonal tax coefficient from 125 to 124 to leave municipal tax autonomy intact. This proposal was preferred by 54 votes, against 46 for the government’s project.

The wealth tax concerned

In addition to the left, four deputies from the UDC, a Green Liberal and one from the Center were sensitive to the cause of the municipalities and preferred to modify the tax coefficient. This variant costs the canton 5.9 million francs and does not affect the municipalities.

Crystel Graf was surprised that this proposal came from the left because the tax coefficient affects the wealth tax and will allow those who pay it (the wealthiest) to have a tax cut. After developing this variant, the VertPOP group and a majority of socialists opposed it but the decree was accepted by 57 yes, against 43 no.

Rather than reducing the tax coefficient, the PS made an alternative proposal. He tabled a motion to allow redistribution to the population of the amount of 6 million francs, so that this amount is distributed equally for all categories of the population. This motion became obsolete with the acceptance of the modification of the tax coefficient.

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