National Council Backs VAT Increase to Fund 13th AHV Pension
Bern, switzerland – The National Council today voted to finance the newly approved 13th AHV pension through an increase in Value Added tax (VAT), rejecting proposals for wage contributions or a more flexible funding model.The decision sets the stage for a potential clash with the Council of States, which previously favored a combined approach of VAT increases and higher wage contributions.
The move ensures the 13th AHV pension, approved by popular vote, will be funded without placing additional burden on wages. the national Council approved raising VAT by 0.7 percentage points by the end of 2030. This contrasts with the Federal Council’s proposal for an unlimited VAT increase. The Council of States’ plan also included provisions for financing potential changes to the AHV marriage pair plan.
Several minority proposals seeking to align the National Council with the council of States’ model – put forward by the Centre, SP, and Green parties – were defeated, facing opposition from the SVP, FDP, and GLP. Attempts to propose deeper cuts to VAT or wage contribution increases also failed to gain traction.
A proposal by andri Silberschmidt (FDP/ZH) to implement a debt brake for the AHV, triggering VAT increases and a gradual raising of the retirement age if the fund fell below 90% capacity, was also rejected by a vote of 108 to 89.
