Swiss Federal Council Announces Public Referendum on VAT Increase to Fund Additional Pension Payment

The Swiss Federal Council has announced that a public referendum will be held on 29 November 2026 for a VAT increase to finance an additional "13th month" pension payment under the old-age and survivors' insurance program (AHV), which will be paid out for the first time in December 2026. Approved by the Swiss Federal Assembly (parliament) in June 2026, the VAT increase includes an increase in the standard VAT rate from 8.1% to 8.5% and an increase in the VAT rate for the accommodation sector…