Switzerland's September Referendums: The Implications for Property Taxes and Digital Identity
In a nation where digital advancements and fiscal policies often spark lively debates, Switzerland is gearing up for a significant vote on two key issues: the implementation of a new electronic identification (e-ID) system and a reform of the property tax system.
The proposed e-ID, a modern electronic identification card, is slated to enable digital identity verification for online applications and services. The new version of the e-ID law, which has been passed by the government, states that only the federal government will issue the e-ID and manage the required technical infrastructure. The government argues that this move is necessary for Switzerland to keep pace with the digital transition.
However, opposition to the new e-ID law is mounting. Digital Integrity Switzerland, among others, believes the proposed federal digital identity system lacks sufficient data protection and privacy safeguards, potentially risking user sovereignty and security. They advocate for a decentralized and open, transparent technology-based system to ensure control by individuals over their personal data.
Meanwhile, the property tax reform is another hot topic. If a special property tax is rejected, people will continue to be taxed on the imputed rental value of their properties. However, a recent amendment to the law has abolished this taxation for primary and secondary residences. If passed, property owners who use their property themselves would be required to pay income tax on the imputed rental value, but could deduct mortgage interest and maintenance costs from their taxable income.
The parliamentary minority, comprising groups like the Swiss People's Party, the Federal Democratic Union, and the Friends of the Constitution, wants to retain the rental value tax on the grounds that the abolition would primarily benefit homeowners and could lead to a drop in state tax revenue.
The abolition of tax on the imputed rental value is legally linked to the constitutional amendment, so the entire reform depends on the outcome of the vote.
In the midst of these debates, the government and parliamentary majority recommend a 'yes' vote for both the e-ID and the property tax reform, while the parliamentary minority stands against them. The e-ID, which was previously rejected by voters in 2021 due to concerns about security and privacy, is once again at the centre of public discourse.
As Switzerland moves towards this significant vote, the nation's future digital identity and property tax landscape hangs in the balance.
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