Housing shortage Zurich Cantonal Council does not want a tax deduction for rental costs

Rent cannot be deducted from taxes in the canton of Zurich in future either. On Monday, the cantonal council defeated an SVP proposal calling for a "social deduction for tenants". According to the large majority, this would only create new problems.

The parliamentary initiative (PI) only received 48 votes. However, it would have needed 60 votes for provisional support. The SVP demanded that tenants should be able to deduct 30 percent of their rental costs from their taxes. According to the SVP demand, the maximum deduction would have been around CHF 10,000.

Apart from health insurance premiums, rental costs are the biggest financial burden for the people of Zurich, the SVP justified its proposal. Rents are constantly rising, especially in the larger cities. A tax deduction would be a "fair solution" to relieve the burden on people, said Marcel Suter (Thalwil). Such deductions already exist in the cantons of Zug and Neuchâtel.

Many council members described the SVP's PI as "seductive" and "charming" at first glance. On closer inspection, however, such a tax reduction would not solve the problem of high rents and the housing shortage - on the contrary.

350 million less tax revenue

"Such a tax deduction would trigger a price spiral in rents because more expensive apartments would be rented," said Cristina Cortellini (GLP, Dietlikon). This would not solve the housing problem.

Perhaps the tax bill would be around 500 francs cheaper. "But that hardly helps the individual," said Jasmin Pokerschnig (Greens, Zurich). At the same time, the canton and municipalities would lose an estimated CHF 350 million in tax revenue. "This PI does not create a single affordable apartment, but merely deprives the state of tax revenue."

Real estate expert Donato Scognamiglio (EVP, Freienstein-Teufen) also criticized the idea, which "comes across as charming" but does not help. It was a watering can from which everyone would benefit a little. However, the watering can also needs to be refilled.