On Sunday, Swiss citizens emphatically rejected a proposed federal inheritance and gift tax of 50 percent on estates over CHF 50 million (roughly US$62 million).

With a turnout of about 42 percent, more than 80 percent of those voting cast a “no” ballot.

The initiative, advanced by the youth wing of the left-leaning Social Democrats, would have marked a significant shift in Switzerland’s long-standing tradition of canton-level inheritance rules.

Under the proposal, the revenue would have been earmarked for climate-related projects.

However, critics — including the federal government, business leaders and tax professionals — warned the levy would threaten Switzerland’s appeal as a stable, low-tax location for families, entrepreneurs and wealthy individuals.

They argued it could undermine decades of predictability in estate planning and prompt relocation abroad.

Switzerland’s ruling Federal Council, along with both houses of parliament, had advised voters to reject the measure, citing concerns over legal uncertainty, disruption to family-owned businesses, and potential loss of tax revenue if wealthy residents departed.

Some lawyers and bankers had already noted that even the mere prospect of the tax had unsettled private wealth management and prompted a few owners of small and medium-sized enterprises to reconsider their residence in the country.

Supporters of the tax contended that the ultra-wealthy contribute disproportionately to environmental damage, and that the proceeds could fund climate mitigation efforts — a cause aligned with long-term global commitments.

Yet the decisive public rejection underscores prevailing confidence in Switzerland’s decentralized, canton-based fiscal system and its model of moderate, predictable tax burdens.

The outcome preserves the status quo of inheritance and gift taxation across the country’s diverse cantons, at least for now.

The clear margin of rejection diminishes the likelihood of a similar federal proposal being seriously revived in the near future.