Geneva, September 13 – The Swiss government plans to raise value-added tax (VAT) to finance increased pensions, but first, it must seek public approval in a referendum. The announcement, based on a report from DPA, highlights the government’s proposal to increase VAT by 0.7 percentage points, from the current 8.1%.
Previous Referendum on 13th Pension
In a March referendum, Swiss citizens rejected the government’s recommendation to provide retirees with an additional monthly pension in the future, known as the 13th pension. This measure would have increased annual pension payments by 8.3% and was proposed to take effect in 2026.
| Proposal | Details |
|---|---|
| VAT Increase | +0.7 percentage points (from 8.1% to 8.8%) |
| 13th Pension | One additional monthly pension for retirees |
Cost of the 13th Pension
According to official estimates, this pension increase would cost approximately 4.2 billion Swiss francs (€4.47 billion) in the first year of implementation.
Upcoming Referendum
The date for the referendum on the proposed VAT increase has not yet been determined.
| Cost (CHF) | Cost (EUR) | Implementation Year |
|---|---|---|
| 4.2 billion | 4.47 billion | 2026 |
Key Keywords:
Swiss VAT increase, pension reform, 13th pension, Swiss government referendum, funding pensions, value-added tax in Switzerland, pension financing
