- Swiss parliament backed the compromise to fund the 13th old-age pension mainly through a VAT increase, after long disagreement over VAT versus payroll deductions.
- The House approved it 108–85 and the Senate 28–13; the earlier split was House favoring temporary VAT hikes and Senate favoring added payroll contributions.
- The standard VAT rate will rise by 0.4 points from 2028, and the hotel rate by 0.2 points; reduced VAT on essentials stays unchanged.
- The 13th pension is set to be paid for the first time at year-end, costing about CHF 4.2 billion initially and rising in later years.
- The VAT change still needs a constitutional amendment approved by voters and cantons; employers and unions criticized the outcome for different reasons.
Source: swissinfo.ch
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Switzerland"
- VAT Assessment for Closely Related Services and Vehicle Private Use After Limitation Period
- Swiss Supreme Court Rejects VAT Exemption for Captive Reinsurer Support Payments
- No Direct Appeal: Import Tax on Diesel Subject to Mineral Oil Tax Rules
- VAT Input Tax Adjustment Dispute Over Holding Company Dividend Investments Dismissed
- VAT Input Tax Deduction for Zurich Airport Fees Denied in Part
