by Photo by Nataliya Vaitkevich on Pexels.com The cost of Swiss health insurance has risen sharply over the years. However, the amount that can be deducted from income to calculate federal taxes has remained comparatively low. This week, Switzerland’s parliament voted in favour of closing the gap between the standardised health insurance tax deductions and what people actually pay, reported RTS. The current deductions are CHF 1,700 for an adult, CHF 3,500 for a married couple and CHF 700 for a child. These are set to rise to CHF 3,000 for an adult, CHF 6,000 for a married couple and CHF 1,200 for a child. The change is forecast to cost CHF 400 million in lost tax revenue, a CHF 315 million drop in federal tax income and a CHF 85 million fall in cantonal tax revenue.
Topics:
Investec considers the following as important: 3.) Personal Finance, 3) Swiss Markets and News, Editor's Choice, Featured, health, newsletter, Personal finance
This could be interesting, too:
Investec writes The global brands artificially inflating their prices on Swiss versions of their websites
Investec writes Swiss car insurance premiums going up in 2025
Investec writes The Swiss houses that must be demolished
Investec writes Swiss rent cuts possible following fall in reference rate
Photo by Nataliya Vaitkevich on Pexels.com
The cost of Swiss health insurance has risen sharply over the years. However, the amount that can be deducted from income to calculate federal taxes has remained comparatively low. This week, Switzerland’s parliament voted in favour of closing the gap between the standardised health insurance tax deductions and what people actually pay, reported RTS.
The current deductions are CHF 1,700 for an adult, CHF 3,500 for a married couple and CHF 700 for a child. These are set to rise to CHF 3,000 for an adult, CHF 6,000 for a married couple and CHF 1,200 for a child.
The change is forecast to cost CHF 400 million in lost tax revenue, a CHF 315 million drop in federal tax income and a CHF 85 million fall in cantonal tax revenue. The government is concerned by the lost tax revenue given Switzerland’s difficult financial situation following the pandemic.
The project to boost health insurance deductions began in 2017 when Jean-Pierre Grin, a parliamentarian from the Swiss People’s Party (UDC/SVP), argued that it was needed after an explosion in the cost of the compulsory insurance charges every resident of Switzerland must pay.
You Might Also Like
Swiss salaries shrink for men and rise for women in 2021
2022-06-06
Overall, in 2021, Swiss salaries shrunk by 0.2% in nominal terms and by 0.8% in real terms, given an annual rate of inflation of 0.6% across the year, reported the Federal Statistical Office (FSO) this week.
Recent price rises only the beginning, says Swiss consumer association
2022-05-10
Food, energy and housing costs are rising in Switzerland and consumers are beginning to change their spending habits. So far inflation in Switzerland has been moderate with annual inflation of 2.5%. However, according to FRC, a consumer association in French-speaking Switzerland, recent price rises are only the beginning, reported RTS.
Tips for cutting energy bills
2022-05-01
As the prices of fossil fuels skyrocket and further supply and price uncertainty looms, many are seeking ways to cut the amount they spend on home energy. A publication by the Swiss Federal Office of Energy (SFOE) shows where savings can be made.
Average annual healthcare costs hit 9,600 francs in Switzerland in 2020
2022-04-30
Statistics published on 26 April 2022 show health expenditure in Switzerland rose to CHF 9,648 (US$ 10,8001) per person in 2020, making Switzerland (probably) the second biggest per-capita healthcare spender in the world – the OECD has not yet published 2020 expenditure for the US, which is typically the world’s highest spender.
Swiss health insurance could jump by 9 percent next year
2022-04-10
According to the newspaper Le Matin Swiss health insurance premiums could rise by 7% to 9%, reported RTS. The future rise in the cost of health insurance is estimated based on data on the rising healthcare costs being passed on to health insurance companies. According to the data, costs rose during the second half of 2021. Across all of 2021 costs were up by 5.1% and the trend appears to have continued.
Chart of the week: Swiss retirement age compared
2022-03-06
Switzerland’s retirement age of 65 for men and 64 for women puts its state pensioners in the youngest half of OECD retirees.
Photo by MART PRODUCTION on Pexels.comThis week, when a Swiss parliamentarian asked in which direction pension reform was heading, he received a written response that said the state pension system could be stabilised from 2030 with a rise in the retirement age to 68 for both men and women, reported the NZZ newspaper. Many nations have already moved in this direction to make pension funding add up as the number of retirees swells.
So how does Switzerland compare to other OECD nations?
Swiss women get to collect a full state pension 10 years before their counterparts in Denmark eventually will, and Swiss men will get a 9 year head start on Danish men. Both
Higher tax deductions for parents in Switzerland starting in 2023
2022-01-26
This week, Switzerland’s government set a date for the introduction of more generous tax deductions for childcare. From 1 January 2023, parents will be able to deduct up to CHF 25,000 per child in childcare costs from their annual taxable income, reported RTS. Currently, the maximum is CHF 10,100 per child.
Vote against Swiss “Netflix tax” passes signature hurdle
2022-01-25
In October 2021, Switzerland’s government created a law requiring online streaming services to pay money into a Swiss cinema fund. Under the law, from 2024, streaming services such as Netflix and Disney+ will need to pay a levy equivalent to 4% of their Swiss turnover into the fund, which would be spent on producing Swiss films.
Tags: Editor's Choice,Featured,Health,newsletter,Personal finance