Politics · Switzerland · 1 hr ago

Swiss parties clash over how to fund the 13th AHV pension

Swiss parties clash over how to fund the 13th AHV pension

Switzerland plans to make its first 13th AHV pension payment in December 2026.

The extra pension will cost more than four billion Swiss francs at first and later more than five billion.

The government and parliament want to raise the standard value-added tax rate by 0.4 percentage points to help pay for it.

The government says the tax rise, together with a federal contribution, would cover about half of the extra costs.

Opponents say a permanent tax increase would burden households and businesses and argue that other budget measures should be considered.

Supporters say delaying a funding decision risks the stability of the AHV pension system, while critics say structural reforms could mean raising the retirement age.

The proposed VAT increase is now the focus of a political dispute, and the sources give no final decision or next step.

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What people are saying

Elisabeth Baume-SchneiderFederal councillor and head of the Federal Department of Home Affairs
It is also a bit in the DNA of our country that we look after everyone.
via SRF
Susanne Vincenz-StauffacherFDP co-president
We say you can give the AHV more money, including more value-added tax revenue, but from existing tax revenues.
via SRF
Urs FurrerDirector of the Swiss Trade Association
Going to the hairdresser will become more expensive, taking the car to the garage will become more expensive, eating a sandwich in a restaurant will become more expensive.
via SRF
Erich EttlinThe Centre senator
We must not wait until a solution is found at some point, but must solve this now, in the interests of the security of the AHV.
via SRF