Canton of Lucerne plans investments to enhance regional appeal for people and businesses
Lucerne - To maintain the competitiveness of the Canton of Lucerne, the government plans an investment initiative: Starting in 2026, CHF 300 million per year will be allocated to enhance the region as a place to live and do business. The goal is to provide long-term attractive conditions for both companies and residents
The canton of Lucerne has drawn up plans for an investment drive aimed at promoting the appeal of the region. Owing to international taxation developments such as the OECD global minimum tax initiative, the canton of Lucerne is reportedly at risk of losing «its competitive advantage of low corporate profit taxes for large international companies», as the State Chancellery of the canton of Lucerne writes in a press release. In specific terms, it is feared that the companies impacted by these developments may opt to relocate or reduce their investments in the region. In this context, the Executive Council of the canton of Lucerne, which essentially constitutes the cantonal government, intends to counteract these potential downsides with targeted investments in Lucerne to ensure it remains a great place for people to live and for companies to do business.
A proposal submitted for consultation by the Executive Council provides for an annual investment of 300 million Swiss francs as part of a broad package of measures across the canton from 2026 onwards. «The canton of Lucerne is doing well, which gives us the chance to invest in the region as a place to live and business location in order to remain attractive over the long term», as Fabian Peter, who heads up the cantonal construction, environment and economic department, explains in the press release. «That is the aim of this proposal», he adds.
Overall, two thirds of the funding is to be used to strengthen the canton of Lucerne as a business location. Here, the focus will be on promoting innovation and improving the framework conditions for digitalization, the availability of commercial space and customer-oriented administration. Of the remaining 100 million Swiss francs that is to be used for the benefit of the people of Lucerne, the lion’s share of 70 million francs is earmarked for a reduction in the tax rate for natural persons.
