On 4 March 2018, the Swiss electorate voted on the Federal Decree on the 2021 New Financial Regime.
The main points in brief
Direct federal tax and value added tax (VAT) comprise about two thirds of federal revenue. In 2016 this amounted to around CHF 43.5 billion. Together, these taxes form the Confederation's main source of revenue. The Federal Constitution states that the Confederation can only continue to raise them up to the end of 2020. In order to continue to perform its current tasks to the same extent, it will still rely on revenue from direct federal tax and VAT.
What is the vote about?
The Confederation seeks the right to raise these two taxes for a further 15 years, up to 2035. This will mean changing the Federal Constitution, which requires a vote by the People and cantons.
Federal Council's and Parliament's viewpoint
The Federal Council and Parliament recommend agreeing to the 2021 New Financial Regime. Taxes will not be raised as a result of this proposal. If it goes through, the Confederation will have the financial means necessary to continue to perform
its current tasks. The cantons also benefit from the direct federal tax, of which they receive 17 per cent.
Last modification 23.03.2018