Pension and taxes: What’s at stake in Switzerland’s November referendums?

Financing of the 13th pension

The most pressing issue on the ballot – mostly because it is time-sensitive – is the one concerning the payment of the additional monthly state pension (AHV/AVS).

The first payout is scheduled for December, but Swiss voters must still approve the source of the money for this project, which will cost 4.2 billion francs annually for the next four years and 5.4 billion by 2040.

The government wants to finance it through higher Value-Added Tax (VAT), which would be increased from the current 8.1 to 8.5 percent.

The Federal Council and the majority of MPs are urging the ‘yes’ vote, while the minority of MPs are against this measure, arguing that alternative source of financing must be found, such as raising the retirement age, so people work – and contribute to the pension fund – longer.

READ MORE: How could Swiss plan to hike VAT hit you in the pocket? 

Initiative on limiting private fireworks

Citing adverse effects on domestic pets and the environment, the initiative’s instigators – mostly animal welfare groups – are calling for restrictions on arbitrary use of noisy pyrotechnics by private individuals.

Authorities could, however, grant exemptions for authorised private firework displays at special events such as the National Day on August 1st.

Public fireworks displays and silent pyrotechnics should, on the other hand, be permitted.

The Federal Council and the Parliament recommend that voters reject this initiative, arguing that it “goes too far,” since the use of fireworks is already heavily regulated in Switzerland.

READ MORE: The rules around setting off fireworks in Switzerland 

Individual taxation of married people

If you have a sense of déja-vu about this issue – you should.

That’s because this long-debated bid to give married couples the option of being taxed individually rather than jointly – was approved by just over 52 percent of voters in a referendum on March 8th.

However, a multi-party coalition launched an initiative seeking to nullify the results of the previous referendum.

They want husbands and wives to be taxed jointly at the federal level and individually at the cantonal one.

The government is urging the ‘no’ vote, since the approval of this bid could result in “conflicting tax systems at the federal and cantonal levels.

Amendment to the War Material Act

This legislation outlines conditions under which neutral Switzerland could export its weapon systems and components.

For instance, it bans sales to countries engaged in an armed  conflict.

But according to the government,” Russia’s war of aggression against Ukraine has significantly worsened the security situation in Europe. To enable the Federal Council to respond appropriately to the new challenges, the Parliament has decided to amend the conditions governing the export of war material.”

If voters give this proposal a green light, it will become possible for weapons to be supplied to a partner state involved in an armed conflict – but only if this move would be “compatible with Switzerland’s neutrality and its foreign and security policy interests.”

Opponents – mostly the Swiss People’s Party – claim, on the other hand, that “the sale of Swiss weapons to lawless states would  significantly increase the risk of these arms falling into the hands of terrorist groups or ending up in countries at war.”

Do any of these proposals have a chance of succeeding?

Early voter surveys carried out by Tamedia media group  indicate that three of the issues on the ballot will be rejected, and only once will be approved. 

Concretely, 65 percent of voters will accept the initiative to limit fireworks, according to the poll.

However, over 60 percent are expected to say ‘no’ to higher VAT to finance the 13th pension, with a narrow majority (51 percent) voting against the bid to sell weapons abroad.

As for the marriage tax initiative, the survey shows it will be turned down by 51 percent.