Swiss voters set to abolish rental tax but e-ID too close to call

The reform of the home ownership taxes intends to abolish a tax homeowners have to pay on property they live in (imputed rental-value tax). Keystone / Gaetan Bally

The ballot boxes have been closed since noon. Swiss citizens have decided on the introduction of an electronic proof of identity (e-ID) and the abolition of the rental tax for homeowners. The results will be out later today.  

Projections from 1:30pm show a 57% approval for reforming home ownership taxes and a 50-50 result for e-ID.

This is surprising, as the latest polls reckoned it would be the other way around: a clear yes for e-ID and a close call for the rental tax vote.

The projections were carried out by gfs.bern on behalf of the Swiss Broadcasting Corporation (SBC), Swissinfo’s parent company. The margin of error is +/- 1%.

>> Check out the latest results from the cantons: 

After 2021, Swiss citizens have decided for the second time on a law to introduce a system for electronic proof of identity. The first attempt was rejected owing to concerns about data security. The main criticism was that the system would be operated by private companies. This point has been addressed in the new bill. It proposes a system entirely in public hands. The bill is supported by both chambers of parliament with a large majority.

However, an opposing committee brought up concerns that privacy couldn’t be guaranteed. The committee collected over 50,000 signatures for a referendum against the law. For that reason, it went to the ballot box.  

‘Neck and neck’

“It’s neck and neck,” political scientist Lukas Golder told Swiss public broadcaster, SRF, on Sunday. Since the Covid pandemic, Golder said he had observed a growing mistrust of state solutions, particularly in conservative regions. “We’ve received a lot of negative votes from the cantons of Central Switzerland. The initial signals from French-speaking Switzerland aren’t very clear either. So the result will be very close,” he said.

Olga Baranova, secretary general of the CH association, which campaigned in favour of the e-ID, believed the subject remained difficult to grasp for some sections of the population. “Regardless of the final result, the alarm bells have rung,” she told Le Temps. “It’s now essential that the government commits itself to better explaining the challenges of digital technology in our country.” She warned that without this effort, Switzerland risked falling further behind in this area.

Surprise is also palpable in the camp of those opposed to e-ID. “Guarantees were missing from this law, and a lot of people have realised this,” said Jonas Sulzer, a member of the referendum committee.

He pointed to the discrepancy between the vote in parliament, which was largely in favour of the project, and that of the people, who were much more divided. Sulzer stressed, however, that the referendum committee is not opposed to digitalisation. “We will continue to move forwards, but towards digitalisation that protects citizens,” he said.

>> Here is our explainer on the new e-ID law: 

Rental tax: fear of loss in tax revenue

The reform of the home ownership taxes intends to abolish a tax homeowners have to pay on property they live in (imputed rental-value tax). To do this, the cantons would be compensated with an optional new tax on second homes. This move is in the sense of a compromise. 

Both chambers of parliament and the government support the reform. Opponents, such as the left-wing Social Democratic Party and the Green Party, are concerned about the loss in tax revenue. 

>> Read more on this tax change in our explainer: 

Swiss citizens can decide on national issues up to four times a year. Around 5.5 million Swiss are eligible to go to vote. Over the past ten years, the average voter turnout has been 41%-57%, according to the Federal Statistical OfficeExternal link.