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The OECD suggested a number of measures to rebalance Switzerland's tax system, in particular increasing consumption taxes in favor of reducing personal tax rates

Switzerland should radically reform its tax system to boost economic growth, according to the Organization for Economic Co-operation and Development.

The OECD's latest economic survey for Switzerland criticized what it said were "unusually high" personal income taxes and "generous provisions" which allow for interest payments on household debt to be tax deductible.

But any major changes to the Swiss tax system are likely to meet strong resistance at home, particularly from the cantons which fiercely defend their ability to set individual tax regimes.

The OECD's assessment of the Swiss tax system, Economics Minister Johann Schneider-Amman said: "It's a recommendation. We did not - and we do not - negotiate. That's not the idea. Principally I agree. From a general point of view it would be better to shift. But it's not that easy to find the support in the political world."

The survey was formally presented to the Swiss government recently, when Schneider-Amman accepted the 100-page document from OECD General Secretary Angel Gerri in Bern.

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Published on our website on February 1, 2012