Tax on planes to fund trains: initiative in Ticino

Context

In brief

• Minimum tax of 30 francs per airline ticket
• Expected revenue: 1.5 billion francs per year
• Two-thirds of funds in public transport vouchers

Key facts

• What: Initiative to tax airline tickets
• When: Launched on October 15, 2024
• Where: Switzerland, with direct impact in Ticino
• Who: Comitato actif-trafiC
• Amount: 1.5 billion francs per year
• Goal: Support public transport

A committee aims to increase the cost of airline tickets to support passenger rail transport in Switzerland. The initiative, launched on Tuesday, provides for a minimum contribution of 30 francs per airline ticket, proportional to the distance and class of flight. According to the committee, the expected revenue from this tax amounts to approximately 1.5 billion francs per year. At least two-thirds of this amount will be paid to the population in the form of vouchers for public transport. The rest of the revenue will allow the development of rail links to neighboring countries.

Martine Docourt, National Councilor (PS/NE), emphasizes that the initiative will bring financial benefits to approximately 90% of the population. The vast majority of the population will receive more money in vouchers than they will spend in taxes.

Implications for cross-border workers

Cross-border workers who frequently travel by plane could be affected by this tax. However, the vouchers for public transport could compensate for the additional costs, making train travel more convenient for commuters.

Concrete examples

• Current cost: A flight ticket from Lugano to Zurich costs approximately 150 francs. With the new tax, the cost would increase to 180 francs.
• Public transport vouchers: A cross-border worker who travels once a month from Chiasso to Milan would spend approximately 60 francs in annual taxes but would receive vouchers worth 120 francs.

Regulations and dates

• Effective date: January 1, 2026
• Tax amount: Minimum of 30 francs, up to 120 francs for first-class intercontinental flights.

Operational checklist

1. Tax calculation: Verify the distance and class of flight. 2. Distribution of vouchers: Vouchers will be distributed quarterly. 3. Use of vouchers: Vouchers can be used on all public transport in Switzerland.

Comparison of practical scenarios

• Scenario 1: A cross-border worker who travels by plane from Mendrisio to Milan once a month will spend 60 francs in annual taxes but will receive vouchers worth 120 francs.
• Scenario 2: A cross-border worker who uses the train from Bellinzona to Lugano every day will spend approximately 1,200 francs per year on a subscription but will receive vouchers worth 240 francs.

Conclusion

The initiative represents a significant step towards the sustainability of public transport in Switzerland, with a direct impact on cross-border workers in Ticino. The vouchers for public transport could compensate for the additional costs, making train travel more convenient for commuters.

Operational details

The initiative aims to make public transport more accessible and attractive, especially for cross-border commuters who cross the Italian-Swiss border. Public transport vouchers could be used for train travel both in Switzerland and neighboring countries, thus facilitating cross-border mobility. For example, a cross-border worker who travels daily from Varese to Lugano could benefit from a voucher worth 500 Swiss francs per year, significantly reducing travel costs.

Comparison with the current situation

Currently, cross-border workers who use the plane for frequent travel could benefit from public transport vouchers, reducing travel costs. However, it is important to consider that the introduction of a tax on airline tickets, scheduled for 2025, could increase costs for those who frequently travel by plane. For example, a flight from Milan to Zurich could see an increase of approximately 20 Swiss francs per leg.

Future Scenarios

If the initiative is approved, cross-border workers could see an increase in air travel costs, but also an improvement in railway services. This could make the train a more convenient and attractive option for commuters crossing the border. For example, a train journey from Bellinzona to Locarno could become more affordable thanks to the vouchers, with an estimated 30% savings on tickets.

Comparison between plane and train

Procedure to obtain the vouchers

1. Purchase of an airline ticket subject to the tax. 2. Receipt of a public transport voucher proportional to the tax paid. 3. Use of the voucher for train travel in Switzerland and neighboring countries.

This procedure could simplify access to public transport for cross-border workers, making it more convenient to use the train for their daily commutes. For example, a cross-border worker traveling from Mendrisio to Chiasso could use the voucher to purchase monthly tickets, saving up to 100 Swiss francs per month.

Operational Checklist

• Verify the compatibility of the airline ticket with the tax.
• Calculate the voucher amount based on the tax paid.
• Use the voucher to purchase railway tickets in Switzerland and neighboring countries.
• Monitor the savings obtained thanks to the vouchers.

Concrete Examples

• Cross-border worker from Como to Lugano: With a voucher of 600 Swiss francs per year, they could save up to 25% on railway tickets.
• Cross-border worker from Campione d'Italia to Lugano: With a voucher of 400 Swiss francs per year, they could save up to 20% on railway tickets.

Regulations and Dates

• Introduction date of the tax on airline tickets: January 1, 2025.
• Tax amount: 20 Swiss francs per leg.
• Voucher value: Proportional to the tax paid, with a maximum of 600 Swiss francs per year.

This initiative could represent a significant step towards more sustainable and convenient mobility for cross-border workers in Ticino.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Tax on planes to finance trains: the initiative in Ticino

For cross-border workers who want to take advantage of public transport vouchers, it is crucial to monitor the evolution of the popular initiative 'For public transport, not for private planes', submitted in Ticino in 2023. If the initiative is approved, cross-border workers could benefit from an improvement in railway services and a reduction in travel costs. Currently, the tax on airline tickets is set at 10% of the ticket price, with a minimum amount of 30 CHF and a maximum of 100 CHF. The proceeds, estimated at around 5 million CHF per year, would be used to enhance regional lines, such as Lugano-Ponte Tresa or Bellinzona-Luino.

Concrete steps

1. Inform yourself: Monitor the news on the approval of the initiative, consulting the website of the Ticino Grand Council or local sources such as the Corriere del Ticino. 2. Plan: Consider using the train for frequent trips between towns such as Chiasso and Como, or Lugano and Varese. For example, a plane ticket from Milan to Zurich costs around 150 CHF, subject to a tax of 30 CHF. With this tax, you could get a 30% voucher for public transport, reducing the cost of a monthly subscription from Chiasso to Zurich from 300 CHF to 210 CHF. 3. Use the vouchers: Buy airline tickets subject to the tax to receive vouchers for public transport. For example, a flight from Lugano to Geneva costs around 200 CHF, with a tax of 30 CHF. This voucher could cover 30% of a monthly subscription for the Lugano-Bellinzona line, reducing the cost from 200 CHF to 140 CHF. 4. Save: Use the vouchers for train trips in Switzerland and neighboring countries. For example, a 30 CHF voucher could cover 50% of a single ticket from Lugano to Milan, reducing the cost from 60 CHF to 30 CHF.

Operational checklist

• [ ] Check the approval of the initiative on the website of the Ticino Grand Council.
• [ ] Calculate the tax on airline tickets using the cost of living calculator.
• [ ] Compare the costs of airline and train tickets between the main Ticino hubs.
• [ ] Plan train trips using the vouchers obtained.

Useful tools

To calculate the costs and benefits of public transport vouchers, you can use the cost of living calculator. This tool helps to compare travel costs and plan movements in the best way. For example, a cross-border worker traveling from Mendrisio to Milan could save around 100 CHF per month using the vouchers.

Comparisons between practical scenarios

• Current scenario: A plane ticket from Lugano to Zurich costs 150 CHF, with a tax of 30 CHF. A monthly subscription for the Lugano-Zurich line costs 300 CHF.
• Scenario with vouchers: With a 30% voucher, the monthly subscription would cost 210 CHF, saving 90 CHF per year.

Conclusion

The initiative to tax airline tickets and support public transport could have a significant impact on cross-border workers. Monitoring the evolution of the initiative and using the available tools to plan your movements is fundamental to take advantage of the potential benefits. For example, a cross-border worker traveling from Chiasso to Zurich could save around 120 CHF per year using the vouchers.

Source: rsi.ch