Claim: Switzerland revoked India’s ‘Most Favoured Nation’ (MFN) status due to issues concerning Sikh communities in Europe.
Fact Check:
The claim is false. The suspension of MFN status by Switzerland is not related to any political or social issues involving Sikh communities. Instead, it is due to a legal matter concerning the Double Taxation Avoidance Agreement (DTAA) between India and Switzerland.
Our Investigation:
During the fact check, credible reports from multiple media outlets clarified the situation:
- Hindustan Times (December 14, 2024) reported that from January 1, 2025, dividends of Indian entities in Switzerland will be taxed at 10%. This follows Switzerland’s suspension of the MFN clause under the DTAA with India.
- Times of India (December 16, 2024) highlighted that the withdrawal of MFN status stems from a 2023 Supreme Court ruling in India involving Nestlé, a Swiss multinational company. The ruling stated that MFN benefits under the treaty would not automatically apply without proper notification from Indian authorities.
Conclusion:
The claim that Switzerland revoked India’s MFN status over issues related to Sikh communities in Europe is false. The actual reason is a legal and taxation-related matter under the DTAA between India and Switzerland.