Phil Collins may be taxed more

GENEVA - Agence France-Presse

Phill Collins. AFP photo

Switzerland took a step towards higher taxes on 5,000 wealthy foreign residents, with the upper chamber of parliament approving a bill for a higher tax rate on March 6.

The text will now be put to the lower chamber, where Socialists are however expected to try to block the adoption of the bill, as they want preferential tax treatment for foreigners scrapped completely. Switzerland has come under pressure from its neighbors as well as from some of its own citizens over its flat rate tax system that has attracted the wealthiest to claim residency here.

Among them are celebrities such as musician Phil Collins or Formula 1 champion Michael Schumacher.

The Swiss government has put forward proposals to make these wealthy foreigners pay more, although not too much so as to avoid causing them to leave. This group contributes about 556 million euros a year to Swiss state revenues.