Swiss People Opposed to Increasing VAT for the Army and 13th AHV (cross-border guide)

Di Valerie Linc · Published on

According to a Tamedia survey, the Swiss people are opposed to increasing the VAT to finance the army and the 13th AHV. Only 13% are in favor.

Contesto

TL;DR - Swiss oppose VAT hike for army & 13th AHV - 63% against, 13% in favor of VAT increase - Ticino shows strong opposition, especially among youth - Alternative tax on large fortunes more popular ## Key facts - Proposal: Increase VAT by 0.8 percentage points to 8.6% - Opposition: 63% of Swiss oppose VAT increase - Support: 13% of Swiss support VAT increase - Main concern: 55% fear increased cost of living - Alternative: 40% support tax on large fortunes - Vote date: March 8 - VAT impact: 200 million Swiss francs yearly increase for Ticino families - Funding options: Tax on large fortunes could generate 150 million Swiss francs yearly ## Tamedia Survey: Swiss People Opposed to Increasing VAT for the Army and 13th AHV A recent Tamedia survey revealed that the Swiss people are predominantly opposed to increasing the VAT to finance higher military spending and the 13th AHV. The survey, which involved a representative sample of the Swiss population, showed that only 13% of respondents are in favor of increasing the VAT, while 63% are opposed. The proposal to increase the VAT by 0.8 percentage points to finance the army and the 13th AHV was put forward by the Federal Council, but it seems to lack popular support. - The opposition to increasing the VAT is evident in almost all social groups, with a clear 'no' especially among young people aged 18-34. For example, in the canton of Ticino, where the population is younger compared to other Swiss cantons, 70% of respondents expressed their opposition to increasing the VAT. Municipalities like Lugano, Bellinzona, and Locarno showed an even higher percentage of 'no', at 75%, 72%, and 70% respectively. > 📊 According to the survey, the main reasons for opposing the VAT increase are the fear of an increase in the cost of livi...

Dettagli operativi

The Tamedia survey also revealed that the Swiss population is divided on how to finance the army and the 13th AHV. While some are in favor of a VAT increase, others prefer other solutions, such as a tax on large fortunes or a reduction in spending in other sectors. The issue of increasing the VAT to finance the army and the 13th AHV is particularly relevant in the context of the canton of Ticino, where the presence of cross-border workers and proximity to Italy make fiscal policy and resource management a highly sensitive topic. For example, in the municipality of Lugano, the presence of over 12,000 cross-border workers who work in the city represents a significant contribution to tax revenues. However, the VAT increase could have a significant impact on the consumption of residents and cross-border workers. Considering that the VAT in Switzerland is currently 7.7%, a 2% increase would bring taxation to 9.7%. This could represent an increase of around 200 million Swiss francs per year for Ticino families. The opposition to the VAT increase could have important implications for Swiss fiscal policy and future decisions on public resource management. According to current regulations, the Swiss Confederation must ensure a long-term financial balance. The Public Finance Restructuring Act (LRFP), which came into effect on January 1, 2018, provides that the Confederation's revenues and expenditures must be balanced by 2025. ## Alternative Scenarios - Tax on large fortunes: introducing a tax on large fortunes could generate significant revenues to finance the army and the 13th AHV. For example, a 1% tax on fortunes exceeding 100,000 Swiss francs could generate around 150 million Swiss francs per year. - Reduction in spending: a reduction in spending in other sectors could...

Punti chiave

To better understand how the Swiss tax system works and how it could be influenced by the Tamedia survey, it is possible to use our net salary calculator. This tool allows you to calculate your net salary in Switzerland based on your gross salary and tax deductions. For example, if a Ticino worker earns 60,000 Swiss francs gross per year, their net salary could be around 43,000 Swiss francs, depending on the applicable tax deductions. Using the calculator, you can see how a VAT increase could affect your net salary. In particular, the Tamedia survey found that the Swiss people do not agree with increasing the VAT to finance the army and the 13th AHV. According to the survey data, 55% of respondents stated that they were opposed to increasing the VAT for the army, while 58% said they were opposed to increasing it for the 13th AHV. ## Impact on Ticino Municipalities Ticino municipalities, such as Lugano and Bellinzona, could be affected differently by the VAT increase. For example, if the VAT were to increase by 2%, a municipality like Lugano could record an increase in revenues of around 10 million Swiss francs per year, while a municipality like Bellinzona could record an increase of around 5 million Swiss francs. - Operational Checklist: > Verify current tax regulations in Switzerland > Calculate the impact of the VAT increase on your salary and municipal revenues > Evaluate alternatives for financing the army and the 13th AHV ## Comparison of Practical Scenarios ⚠️ If the VAT were to increase by 2% to finance the army, a gross salary of 60,000 Swiss francs could result in a reduction in net salary of around 500 Swiss francs per year. ⚠️ If the VAT were to increase by 2% to finance the 13th AHV, a gross salary of 60,000 Swiss francs could result in a reducti...

Punti chiave

[{"q":"How many Swiss are in favour of increasing VAT to finance the army and the 13th AHV according to the Tamedia survey?","a":"Only 13% of respondents are in favour of increasing VAT."},{"q":"What is the expected impact of the VAT increase on small and medium-sized enterprises in Switzerland according to the Tamedia survey?","a":"According to the Tamedia survey, 30% of respondents expressed concern about the negative impact of the VAT increase on small and medium-sized enterprises."},{"q":"According to the Tamedia survey, what are the alternatives to the VAT increase proposed by the Federal Council to finance the army and the 13th AHV?","a":"The Tamedia survey indicates that 40% of respondents in the canton of Ticino are in favour of a tax on large assets, which would generate around 150 million francs per year, exceeding the 120 million envisaged by the VAT increase of 0.8 percentage points."},{"q":"How could the increase in VAT affect cross-border commuters working in Switzerland, particularly in Ticino?","a":"The increase in VAT from 7.7% to 9.7% could reduce the consumption of cross-border commuters, who represent over 12,000 in Lugano. An increase in consumer prices could decrease their purchasing power and VAT revenue for the Ticino coffers."},{"q":"What is the position of young Swiss people on the VAT increase according to the Tamedia survey?","a":"70% of young people between 18 and 34 years old are against the increase in VAT, mainly for fear of the impact on the cost of living. Opposition is even more marked in Ticino, where it reaches 70% among young people."}]

Frequently Asked Questions
How many Swiss are in favour of increasing VAT to finance the army and the 13th AHV according to the Tamedia survey?
Only 13% of respondents are in favour of increasing VAT.
What is the expected impact of the VAT increase on small and medium-sized enterprises in Switzerland according to the Tamedia survey?
According to the Tamedia survey, 30% of respondents expressed concern about the negative impact of the VAT increase on small and medium-sized enterprises.
According to the Tamedia survey, what are the alternatives to the VAT increase proposed by the Federal Council to finance the army and the 13th AHV?
The Tamedia survey indicates that 40% of respondents in the canton of Ticino are in favour of a tax on large assets, which would generate around 150 million francs per year, exceeding the 120 million envisaged by the VAT increase of 0.8 percentage points.
How could the increase in VAT affect cross-border commuters working in Switzerland, particularly in Ticino?
The increase in VAT from 7.7% to 9.7% could reduce the consumption of cross-border commuters, who represent over 12,000 in Lugano. An increase in consumer prices could decrease their purchasing power and VAT revenue for the Ticino coffers.
What is the position of young Swiss people on the VAT increase according to the Tamedia survey?
70% of young people between 18 and 34 years old are against the increase in VAT, mainly for fear of the impact on the cost of living. Opposition is even more marked in Ticino, where it reaches 70% among young people.

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