In the latest round of national referendums on September 28th, Swiss voters will have their say on two controversial issues. We explain what they are.
Two topics are on the national ballot this month.
The first is a long-debated and still contentious issue of the electronic identification card (e-ID).
What is it about?
This is how the government explains it: “If you want to order or apply for something online, you may have to prove your identity. With electronic proof of identity, the so-called e-ID, it will be possible to do this completely digitally. The e-ID works like a digital identity card, but currently there is no e-ID in Switzerland.”
It sounds simple enough, but voters had already rejected this legislation in 2021, mainly because the e-ID was going to be issued by private companies, raising concerns about the security of this document.
In the aftermath of this defeat at the ballot box, the government devised a new law, stipulating that only the federal government will issue the e-ID and operate the required technical infrastructure, thereby ensuring the best possible protection of privacy and data security.
The Federal Council is urging the voters to accept the new, ‘improved’ version of the e-ID law because “it is important for Switzerland to keep pace with the digital transition.”
The issue nevertheless remains controversial, and this is why.
Opponents, including the Digital Integrity Switzerland group, the youth section of the Swiss People’s Party, the Federal Democratic Union, and the Friends of the Constitution, argue that even with the government’s assurances to the contrary, the e-ID will provide insufficient privacy protection, will generate a large volume of sensitive data, and could open the door to all kinds of abuse.
They therefore recommend that voters reject this law – again.
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Next: Rental imputed value
According to the government, “if you own a property and use it yourself, you must pay income tax on what is known as the imputed rental value. In return, you can deduct your mortgage interest and maintenance costs from your taxable income.”
But, depending on the results of the referendum, this could change.
The Parliament has passed an amendment to the law that abolishes the taxation of the imputed rental value and restricts the options for making deductions.
This would apply to both primary and second residences.
At the same time, MPs have passed an amendment to the Constitution that allows the cantons to introduce a special property tax on second homes.
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Why is this up for a vote?
That’s because all amendments to the Constitution must be approved by the people and the cantons.
“The abolition of tax on the imputed rental value is legally linked to the constitutional amendment, so the entire reform depends on the outcome of the vote: if the special property tax is rejected, people will continue to be taxed on the imputed rental value of their properties,” the Federal Council said.
Who is for and against this change?
The government recommends the ‘yes’ vote, while the parliamentary minority is against it.
They want to to retain the rental value tax on the grounds that the abolition would primarily benefit homeowners and could lead to a drop in state tax revenue.
Others are in favour of abolishing the tax on primary homes, but retaining it for second residences..
