World Bulletin / News Desk
The motion was tabled by the southern Ticino canton, said Esref Dalkiran, deputy counselor for religious services of Turkey's Embassy in Bern.
The bill called for the prohibition of foreign funds for the upkeep of mosques.
Following discussions, the Upper House rejected the bill with 29 "No" votes against seven "Yes" votes, with four abstentions.
The Upper House said it was unfair to impose any restrictions without granting rights to Muslims.
Dalkiran welcomed the decision.