Swiss Weigh Boosting VAT, Raising Contributions to Fund Pensions

Switzerland’s government is considering increasing mandatory contributions deducted from wages and raising the value-added tax to fund the increase in pensions citizens voted through this month.

Swiss citizens voted — against the government’s advice — in favor of a union-backed plan to give pensioners a 13th monthly payment starting in 2026. The Federal Council on Wednesday presented a proposal to fund the additional cost of the change, which it put at 4.2 billion francs ($4.6 billion) in the first year.

The government laid out two different plans which it wants to explore, it said in a statement. The first ...