Vaud voters decide on 12 percent tax cut
Friday 11th September 2026 on 12:45 in
Switzerland
Voters in the canton of Vaud will decide on September 27 whether to cut cantonal income and wealth taxes by 12 percent, SRF reported. Supporters say the measure would strengthen purchasing power, while the cantonal government, left-wing parties and trade unions warn of substantial revenue losses.
The initiative is one of the most closely contested cantonal votes in recent years. It was launched by three Vaud business associations: the Vaud employers’ association, the Chamber of Real Estate and the Chamber of Commerce and Industry. It gathered more than 28,000 signatures in 2023, more than twice the number required.
The campaigners argue that Vaud’s tax burden is too high compared with other cantons and that the canton could afford the reduction by limiting spending. They say the measure would make Vaud more attractive and strengthen the purchasing power of the middle class. They reject the description of the proposal as a tax gift, calling it a moderate correction. They also describe it as fair because all taxpayers would benefit from the 12 percent cut.
Municipal taxes would not be affected.
The cantonal government and parliament oppose the initiative. The government points to a seven percent income tax reduction already approved and scheduled to be introduced gradually by 2027. Compared with that plan, the initiative would result in additional annual revenue losses of 272 million Swiss francs, according to the government.
The government says the shortfall would lead to savings and cuts in public services. Left-wing parties and trade unions also argue that people with high incomes and large assets would benefit most. They say the initiative would threaten funding for public services while the canton’s finances are already under pressure.
The SP and Greens recommend rejecting the initiative, while the Swiss People’s Party recommends approval. The Green Liberal Party supports it and the Centre opposes it. The FDP is divided: its delegates adopted a recommendation in favour, while a majority of the party’s parliamentary group in the cantonal legislature opposed it.
If approved, the initiative would cancel the previously agreed seven percent tax reduction. It would also render a planned reform of the tax cap for wealthy residents void.