The starting point for the proposal is the concern that the previous locational advantage of low corporate profit taxes will be lost as a result of the OECD minimum taxation. International corporations will have to pay more tax in future, which means there is a risk that top taxpayers and jobs will move away. The adopted package is intended to cushion these effects and keep Lucerne attractive as a business location through other levers.
The Cantonal Council has amended the law on economic development and regional policy for this purpose. An annual volume of measures of around CHF 300 million has now been anchored in favor of location promotion. The canton is thus creating a predictable framework for the targeted financing of strategic projects and structural improvements.
Innovation, taxes, land, administration
The measures in favor of the economy are concentrated on several axes. At the center is the promotion of innovation. This means supporting companies, projects and structures that increase value creation and future viability. This is complemented by an improvement in the tax burden in other areas in order to partially compensate for the loss of the profit tax advantage.
Another focus is on the development and availability of commercial and residential space. Lucerne wants to ensure that sufficient suitable space is available for businesses, services and housing. Equally important is a “customer-oriented” administration. Processes should become faster, more transparent and more business-oriented so that investments do not fail due to bureaucratic hurdles. For the population, additional measures are aimed at easing the tax burden, improving work-life balance, culture and digitalization.
New rules for micro-shops and shop-fronts
The bill also includes changes to the retail sector. Self-service stores without sales staff with a maximum area of 30 square meters will be allowed to open daily from 5 a.m. to 10 p.m. in future. A restriction to farm stores was narrowly rejected. The regulation thus applies more broadly and facilitates new, automated store concepts.
In addition, stores with fast charging stations will in some cases be treated in the same way as petrol station stores. Anyone who operates at least four charging stations with 150 kilowatts each and a simultaneous total charging capacity of at least 300 kilowatts can benefit from extended opening hours. In this way, the canton is supporting the expansion of e-mobility and linking charging infrastructure with local service offerings.
Political controversy is inevitable
The bill is politically controversial. The SVP and SP have announced a referendum. Both because of the fundamental direction of the package and because of the extended store opening hours and the location policy in favor of large companies. This means that the thrust of Lucerne’s location strategy is likely to be the subject of public debate.
In practice, this means that companies, investors and municipalities will receive a clear signal that the canton is prepared to invest substantial funds in location development. However, whether and in what form the package of measures will definitely come into force will also depend on the political debate and a possible referendum.
