Taxation of the 3rd pillar This is how the federal government wants to save up to CHF 3.6 billion
The federal budget is coming under pressure: deficits in the billions are looming from 2027. The Federal Council wants to stabilize the finances with its relief package 27 - primarily through cost-cutting measures.
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- The Federal Council has submitted the 27th package of relief measures (EP27) for consultation in order to stabilize the federal budget by up to CHF 3.6 billion from 2027.
- The cost-cutting measures primarily affect the Federal Administration, climate promotion programs and agricultural tariffs.
- Additional revenue is to be generated through higher taxation of capital withdrawals.
At its meeting today, the Federal Council submitted the 27th package of austerity measures (EP27) for consultation. The aim is to reduce the federal budget by CHF 2.7 to 3.6 billion from 2027 and thus bring it back into balance.
59 measures are intended to help avoid impending deficits - more than half of which require a change in the law. The consultation period runs until May 5, 2025.
Structural deficits looming - austerity measures necessary
According to current financial planning, the federal government is heading for structural deficits of up to CHF 3 billion in 2027 and 2028. The reason: expenditure is growing faster than revenue.
Income is improving in the short term, and the Council of States has approved a new financing solution for supplementary childcare that will save the federal government CHF 800 million a year. But other burdens remain:
Parliament has decided on faster growth for the army (+ CHF 0.5 billion annually). The 13th AHV pension could cost up to CHF 1 billion a year from 2026. Additional obligations are looming from the EU dossier (Horizon, Erasmus, cohesion contribution). A possible abolition of the imputed rental value could have further financial consequences.
Without countermeasures, there is a risk of breaching the debt brake. The EP27 is therefore indispensable, according to the Federal Council.
Cuts and revenue: Where will savings be made?
The relief package focuses primarily on cost-cutting measures - over 90 percent of the savings come from this area.
Savings in the Federal Administration: 300 million francs are to be saved through a reduction in personnel.
Support programs in the climate sector: financing until 2031 through an increase in the earmarked CO₂ levy (from 33% to 41%).
Additional revenue from agricultural tariffs: The auctioning of tariff quotas for agricultural products is expected to generate CHF 130 million (previously CHF 80 million).
New taxation of capital withdrawals: Capital withdrawals from pillar 2 and 3a are now to be taxed at a progressive special rate. This will generate an additional CHF 200 million for the federal government (previously CHF 280 million).
Despite austerity measures, federal expenditure is to continue to grow by more than 2% per year.
Lifting of credit freezes for 2025
Based on parliamentary resolutions, some credit freezes will be lifted as early as 2025. These include
- International sporting events
- Alternative drive systems for buses and ships
- Cross-border passenger rail transport (night trains)
What happens next?
Mid-February: The Federal Council carries out a new financial policy assessment based on updated budget figures.
Summer 2025: The dispatch is drafted.
September 2025: The Federal Council adopts the bill for Parliament.
Winter 2025: Parliament begins discussing the package.
From 2027: Amendments to the law come into force, unless a referendum is held.