Parliament backs VAT hike for pension payments

The lower house of parliament, the National Council, has rejected the mixed-financing plan and voted only to raise VAT to fund the 13th old-age pension.

Both chambers must confirm the single-financing route at tomorrow’s final vote, after which voters will have to approve the VAT hike in a referendum.

The social affairs minister has confirmed pensioners will still receive the 13th payment in December — though the first two years will be paid out without any matching revenue.

Annual demands on the AVS fund are projected to rise from CHF 4.2 billion in 2026 to CHF 5.4 billion by 2040.

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