New Financial Regulations 2021

Under the current law, the Federal Council is only authorized to levy the direct federal tax and the value-added tax until the end of 2020. With the new Financial Order 2021, this authority is to be extended until the year 2035. The vote will take place on March 4, 2018.

The new Financial Order 2021

‍Under the current financial regime, the Federal Council is only authorized to levy the direct federal tax and the value-added tax until the end of the year 2020. These two taxes account for more than 60 percent of the federal budget. They are thus of fundamental importance for the fulfillment of governmental tasks. To enable the Confederation to continue to perform its tasks and responsibilities after 2020, an adjustment of the Federal Constitution is necessary. Specifically, the transitional provisions of Art. 196 Nos. 13 and 14 Abs. 1 are to be adjusted so that the authority to levy these two taxes is extended until the year 2035.

‍Contentious Time Limitation

‍The importance and significance of these two taxes are obvious. However, in the current political situation, there is no majority that wants to remove the time limitation on the authority to levy the direct federal tax and the value-added tax. Although nearly all cantons have spoken out in favor of removing the time limitation during the consultation process, the majority of the parties have spoken out against lifting the time limitation. Among the associations, the proportion of supporters and opponents of the removal was roughly balanced.

In order for the Financial Order 2021 to be implemented, it must first be approved by the people and the cantons. The vote on this will take place on March 4 of this year.

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