Switzerland defends VAT increase to fund pension payments
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Elisabeth Baume-Schneider defended a proposal to raise the value-added tax (VAT) in Switzerland to finance the 13th annual pension payment. The measure, which voters will decide on November 29th, would raise the standard VAT rate from 8.1% to 8.5% and the hotel rate from 3.8% to 4%. The proposal would reduce the pension fund's projected annual deficit by approximately CHF 2bn by 2035.
From lenews.ch
Why it matters
The increase is intended to stabilize the Swiss state pension system, which government estimates show faces growing financial difficulties. Without the tax increase, the pension fund is projected to have an annual deficit of almost CHF 5bn by 2035. The higher VAT is part of a compromise designed to secure necessary revenue for the additional payment.
From lenews.ch
Who's involved
- Elisabeth Baume-SchneiderSwiss minister defending the proposed VAT increase for pension funding.
- SwitzerlandThe country where the VAT increase and referendum are proposed.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SBBSpeculative
The VAT increase might raise costs for transport services.
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The entities involved
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Elisabeth Baume-Schneider
Swiss politician
Nothing else this week.
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Switzerland
country in Central Europe