MPs voted by 94 to 89 in favour of a bill lodged by the Lega dei Ticinesi party which aims to tighten the rules for mosques in Switzerland, reported news agency ATS.
Under the proposed law, mosques would be prevented from accepting money from abroad. They would have to declare where their financial backing came from and for what purpose the money would be used.
Additionally, imams would be obliged to preach in the language of the area where the mosque is based.
Though the bill was narrowly passed by MPs, it is not backed by the Federal Council, which feels the proposed restrictions are not necessary nor useful, according to ATS.
The bill discriminates against Muslims by placing them under general suspicion and, in doing so, fuels the argument of extremists, feels the Swiss government.
Neither does the Federal Council support the idea of obliging imams to preach in a national language, saying freedom of language applies to people of all faiths.
The bill will now go to the Swiss senate for further debate.