Politics · Switzerland · 21 mins ago
Swiss voters to decide on VAT increase to fund 13th state pension
Switzerland will vote on raising VAT to help fund its 13th state pension on 29 November.
The extra pension payment was approved by voters in 2024 and is due to be paid for the first time at the end of 2026 to about 2.6 million pensioners.
It will cost the state pension system more than four billion Swiss francs a year, and the funding agreed so far does not cover the full cost.
If voters and the cantons approve the proposal, the standard VAT rate would rise from 8.1% to 8.5% from 2028 at the earliest.
The reduced rate on everyday goods such as food, medicines and newspapers would stay at 2.6%, while the hotel rate would rise from 3.8% to 4%.
The government estimates the increase would cost an average household about 180 francs a year, though lower-income households would tend to pay less.
The increase would add money but not cover all the pension system's extra costs, and the government will decide when it takes effect after a yes vote.
Swiss voters will decide on 29 November whether to raise value-added tax to help fund the 13th state pension payment.
The proposed increase would raise the standard rate from 8.1% to 8.5%, no earlier than 2028.
The reduced rate for everyday goods, including food, medicines and newspapers, would remain at 2.6%.
The 13th pension payment is due to be paid for the first time at the end of 2026 to about 2.6 million pensioners.
Supporters say the increase is needed to keep the pension system financially stable, while the SVP and FDP oppose it.
- Who
- Swiss voters will decide; approval also requires the consent of the cantons.
- What
- A proposed VAT increase to help finance the 13th AHV pension payment.
- When
- The vote is on 29 November. The increase would take effect no earlier than 2028 if approved.
- Where
- Switzerland.
- Why
- The 13th pension payment creates additional costs for the AHV, and the financing approved by parliament is not enough to cover them.
Supporters of the VAT increase
Opponents of the VAT increase
Need for funding
Supporters of the VAT increase
Supporters say extra revenue is needed to keep the AHV stable and secure pension payments.
Opponents of the VAT increase
The SVP and FDP oppose the proposed VAT increase.
Who bears the cost
Supporters of the VAT increase
Supporters say the increase shares the cost across generations and the reduced rate for everyday goods limits the burden on lower-income people and families.
Opponents of the VAT increase
Not stated in the available source.
58% of voters and 16 of Switzerland’s 26 cantons approved the 13th pension payment.
The 13th AHV pension payment is due to be paid for the first time.
Swiss voters will decide whether to approve the VAT increase.
The standard VAT rate could rise from 8.1% to 8.5% if the proposal is approved.
- Vote date
- 29 November
- Current standard VAT rate
- 8.1%
- Proposed standard VAT rate
- 8.5%
- Reduced VAT rate
- 2.6%, unchanged under the proposal
- First 13th payment
- End of 2026; about 2.6 million pensioners are due to receive it
- Estimated household cost
- 180 francs per year, or 15 francs per month