Geneva  - Though the biggest issue of Sunday's Swiss referendum was the open market and free movement agreements with Europe, other issues were also at stake, including a proposal to scrap a unique tax break for wealthy foreigners in Zurich.

Local media reported Monday that some 53 per cent of voters in Zurich, the financial hub of the Alpine country, voted to do away with a system that enabled wealthy foreigners to pay taxes as a lump sum, based on their home expenses and not their income.

While those in the canton who benefited from the tax deal were estimated to have numbered just slightly over 130 people, observers said it was the first sign of willingness to implement such changes in the tariff system.

Some who voted in favour of the change, which was supported by left-leaning groups, have felt the loophole was too kind to the ultra-wealthy while others did not appreciate the differentiation between citizens and foreigners.

Those in favour of keeping the lump sum deal felt that scrapping it might chase away the wealthy foreigners who spend their money in Switzerland. Theo Mueller, a German who made his fortune on dairy products, threatened to pack his bags and leave the country if the proposal passed.

Many celebrities, going back to film legend Charlie Chaplin, have taken up residence in Switzerland, enjoying its tax laws. Currently, stars such as Tina Turner, Shania Twain and Michael Schumacher discovered the joys of Swiss living, along with over 4,000 other wealthy individuals with foreign passports who enjoy special tax deals.

Other cantons in the confederation still have tax systems for the wealthy.

The Swiss-style direct democracy sees voters go to the polls about four times a year, to vote on national and local issues. The previous referendum was held in November last year.

The right-wing Swiss People's Party (SVP) had forced the poll on free movement in Europe and used controversial advertising to try and garner a majority against the agreements.

One SVP poster showed three aggressive black crows pecking away at a map of Switzerland, meant to highlight how foreigners, particularly from new European Union members Romania and Bulgaria, would take away jobs from citizens and raise crime rates.

The campaign failed and some 60 per cent of voters supported the government-backed proposal to further open up the neutral and historically isolated country.

A cartoon in the Geneva Le Temps newspaper, whose front page lent support to the "yes" vote, showed on Monday three black crows comfortably nested on a scarecrow representing the SVP, a contented look in their eyes, while in the background a Swiss border crossing was being opened to a bus. (dpa)