The government wants to ensure that households and businesses do not have to pay new taxes that increase their overall tax burden when they take steps to pollute less. This could be done in two different ways: by reducing other taxes or by returning tax money directly.
The main goal of the fiscal reform will be to achieve the objectives of the country's new energy strategy by 2050.
In addition to being more environmentally friendly, the Federal Council poses economic reasons for the reform.
In a statement, the Swiss cabinet says the reform is likely to enhance the competitiveness and innovative capacity of the Swiss economy, creating incentives to invest in promising technologies and promoting structural changes for an economy that is more sustainable, ecologically friendly and competitive.
Finance Minister, Eveline Widmer-Schlumpf, told the media in Bern on Thursday that she will work together with the departments of Energy and the Interior to have a reform proposal in place by the summer of 2012.