Swiss vote to abolish tax breaks for rich losing impetus

Geneva

THE rain lashing Geneva's chic Rue du Rhone couldn't drown out calls by Swiss campaigners for the abolition of a 152-year-old tax break for rich foreigners. Members of the Socialist Party have lampooned a system that allows foreigners to duck income tax by negotiating lump-sum payments with Swiss cantons.

The latest poll shows the protesters may be losing the fight before a Nov 30 national referendum on the tax regime known as the forfait. Bankers and the government warn that abolition will crimp revenues, cut jobs and reduce Switzerland's appeal as rich foreigners flee Geneva and other French-speaking cantons that are home to most forfaits.