Alliance urges VAT rise to fund Swiss pension scheme
Tuesday 13th October 2026 on 15:15 in
Switzerland
A broad alliance of left-wing and centrist parties and trade unions is urging voters to approve a higher value-added tax to finance Switzerland’s 13th old-age and survivors’ insurance (AHV) pension payment, SRF reports. The standard rate would rise by 0.4 percentage points, from 8.1% to 8.5%, while everyday essentials would remain exempt from the increase.
Representatives of the Social Democratic Party, the Centre, the Greens, the Evangelical People’s Party and trade unions presented their case at a news conference in Bern. They said the increase would help secure the AHV’s finances and ensure reliable payments.
The proposal from the Federal Council and Parliament would apply the higher rate to consumer goods and services. Food, medicines, newspapers and hygiene products would remain subject to the reduced rate.
The vote follows the electorate’s approval of a 13th AHV pension in 2024. The Swiss People’s Party and the Free Democratic Party oppose the tax increase. Voters will decide on the proposal on November 29, 2026.