Ticino blocks border health tax restaurants

Context

The Canton of Ticino met with Foreign Minister Ignazio Cassis to ask the Confederation to intervene in the growing dispute with Rome.

The State Council expressed concern about the development of some issues, hoping that the bilateral dialogue could develop constructively with the support of the Confederation.

The main problem is related to the tax on the health of border workers, which has been the subject of numerous disputes between Ticino and Italy. The so-called health tax is the contribution to the Italian National Health Service set by Law 213/2023 (Art. 1, paragraphs 237-239): from 3% to 6% of the net salary earned in Switzerland, with a minimum of 30 and a maximum of 200 euros for each month worked, set each year by the region of residence.

Foreign Minister Ignazio Cassis assured that the Confederation will be present to support the bilateral dialogue and find a constructive solution.

Operational details

Ticino opposes the health tax because it considers that it violates the principle of exclusive taxation provided for by the Italian-Swiss agreement on border workers.

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Key points

• Ticino is ready to reduce or suspend refurbishments destined for border municipalities. - The move is due to the health tax imposed by Lombardy on border workers. - The Council of State expressed concern about the development of some issues.

Context

Ticino is one of the Swiss cantons closest to the Italian border, with a population of about 350,000 inhabitants. The region is known for its fast-growing economy, thanks to its strategic location and accessibility to European markets. However, the health tax imposed by Lombardy on border workers has created tensions between the two states.

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Source: tvsvizzera.it

Article 1(237–238) of Italian Law No. 213/2023 does not apply indiscriminately to all cross-border workers. It covers: (a) Italian residents who work and stay in Switzerland and use the Italian SSN; (b) frontier workers under Article 9(1) of the Italy–Switzerland Agreement whose income is taxable only in Switzerland and who exercised the legal right to choose health insurance; and (c) dependants of those two categories. Paragraph 238 sets a progressive 3–6% share of net Swiss salary, with a €30 minimum and an ordinary €200 maximum for each month worked from 2024. The cap may be doubled in cases of omitted payment or omitted communication specified in Article 1(100) of Law No. 207/2024. The Region of residence sets the rates and procedure each year.