At the beginning of the year, the Swiss Federal Supreme Court ruled in favor of three plaintiffs that cannabis is not a substitute for tobacco and therefore is not taxable under the Tobacco Tax Act. However, since cannabis had previously had to be sold for three years at a 25 percent premium, the government is now reaching into the public funds to refund the tax revenue wrongly collected to the rightful owners. As a result, there will be approximately $34.5 million (CHF 33 million) in tax refunds for cannabis producers in Switzerland.
As reported by the Neue Zürcher Zeitung, the Swiss Federal Customs Administration (FCA) of Switzerland has addressed the fact after the Swiss Federal Supreme Court’s ruling. It also recognizes, in the interests of equal treatment, that the tax payments made by cannabis producers and sellers in the past three years should be repaid.
FCA spokeswoman Donatella Del Vecchio is said to have made this fact known upon request. In the next few days, the producers and traders concerned will receive letter posts from the customs administration, which is to inform them of this news. The FCA is expecting repayments totalling around $34.5 million (CHF 33 million), which the industry players, who have not been treated fairly for a long time, can now look forward to. This would include interest on remuneration.
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