Swiss Minister Defends VAT Rise to Fund 13th Monthly Pension Payment
Federal Councillor Elisabeth Baume-Schneider, Switzerland's social affairs minister, defended the government's financing plan on 10 October: raising value-added tax to pay for the new 13th monthly state pension (AHV) payment. The proposal goes to a popular vote on 29 November.
Swiss voters approved the creation of a 13th monthly pension payment in a referendum in March 2024, adding an extra payment on top of the existing twelve. The first 13th payment is scheduled to be made in December 2026. How to finance the additional outlay has been a central fiscal question in Bern for more than a year.
Baume-Schneider argues that the VAT route puts pension funding on a more sustainable footing. Critics warn that higher consumption taxes raise living costs for ordinary households and favour alternatives such as higher payroll contributions. Switzerland's state pension operates on a pay-as-you-go basis, and population ageing is straining its long-term finances.
29 November is Switzerland's final federal voting day of the year, with several other proposals also on the ballot. Polling suggests the pension question ranks among the issues voters care about most across age groups.
Sources: swissinfo.ch reporting of 10 October and analysis by The Local.
Source: swissinfo.ch
Published by GSM · USA (original Chinese edition)
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