Federal Councillor Elisabeth Baume-Schneider campaigned on October 5 for the additional funding of the AHV, on which a vote will be held on November 29. The standard rate of value-added tax is to rise from 8.1 to 8.5 percent, and the special rate for accommodation from 3.8 to 4.0 percent; the reduced rate stays. Parliament cut the increase to 0.4 percentage points. The 13th AHV pension costs about CHF 4.2 billion a year; the increase would bring in about CHF 1.4 billion. Without a Yes, according to the federal government, the AHV’s deficits would rise to almost CHF 5 billion a year by 2035, and with the increase to about CHF 3 billion. The FDP rejects the proposal. The start date of the higher rates is given differently.
The 13th pension has been decided; its financing has not. The vote decides whether the AHV covers its extra spending through consumption or later through payroll contributions, spending cuts or debt. It is also seen as a preliminary decision on the major AHV reform.
With a Yes, a CHF 100 purchase at the standard rate costs about 37 centimes more. Food and medicines stay at the reduced rate. The 13th pension will be paid out in December either way.
Value-added tax spreads the burden widely, including to pensioners and tourists. Without extra money, the AHV slides into the red faster.
Raising the tax before the reform is in place takes the pressure off cutting costs. Households and small businesses pay even though only half the costs are covered.
The word “half” is the key. Even with a Yes, the 13th pension is only about half financed. The campaign will therefore also decide who carries the other half. Watch whether supporters name a plan for it.
Tages-Anzeiger · NZZ · SRF · watson · Radio Central (Oct. 5) · 20 Minuten (proposal) · start date 2028 or 2029 depending on the source
Baume-Schneider campaigns for higher value-added tax. Without a Yes, half the money for the 13th AHV pension is missing
On November 29, Switzerland votes on whether value-added tax for the AHV rises by 0.4 percentage points. The social affairs minister warns of “serious consequences” if the answer is No. The FDP disagrees.
Federal Councillor Elisabeth Baume-Schneider opened the campaign on Monday for the additional funding of the AHV, as Tages-Anzeiger, NZZ and SRF report in agreement. It is about money for a pension that the people have already approved: the 13th AHV pension will be paid out for the first time in December 2026. What is open is who pays for it. Parliament cut back the Federal Council’s proposal. The standard rate of value-added tax is to rise from 8.1 to 8.5 percent, and the special rate for accommodation from 3.8 to 4.0 percent. The reduced rate for food, medicines and other everyday goods stays unchanged. According to the federal government, the 13th pension costs about CHF 4.2 billion a year. The higher value-added tax would bring in about CHF 1.4 billion of that. The Federal Council originally wanted to finance the whole pension; with Parliament’s compromise only about half is covered, as SRF and watson write. When the higher rate would take effect is given differently in the reports, 2028 or 2029; we leave that open until the text of the proposal is available. Because the value-added tax rates are set out in the Federal Constitution, the proposal needs a double majority on November 29: a majority of voters and a majority of the cantons. That makes the arithmetic harder for both camps. The people accepted the 13th pension itself. Whether they will also accept its financing is another question: receiving more money is more popular than paying more tax.
Baume-Schneider argues with the federal government’s figures. Without a Yes, the AHV’s annual deficits would rise to almost CHF 5 billion by 2035. With the increase, the deficit in 2035 would still be around CHF 3 billion. The minister calls the compromise “moderate and socially acceptable.” The Tages-Anzeiger describes the proposal as contested. The FDP rejects it and demands austerity; the party argues that the increase burdens households and small businesses. For opponents, the vote is also a signal for the major AHV reform that the Federal Council is preparing for the period up to 2040. The basic problem remains: the baby-boom generations are retiring, and revenue is growing more slowly than spending. A value-added tax hits everyone, including pensioners themselves. Payroll contributions would hit only the working population and their employers. That is the core of the dispute, and it will be fought until the end of November. Supporters point out that the increase closes only part of the gap and is therefore measured. Opponents counter that a half-financed expansion has already built in the pressure for the next increase. Both sides rely on the same federal figures; they simply draw opposite conclusions from them. Added to this is a political calendar that leaves little calm: at the end of the year the Federal Council loses a member in Guy Parmelin, and the election of his successor falls in the same weeks as the campaign.