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Home Switzerland

Swiss to vote on CO2 taxes. How much could it cost?

by souhaib
June 11, 2021
in Switzerland
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Swiss to vote on CO2 taxes. How much could it cost?
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On 13 June 2021, Swiss voters will decide on whether to accept a government plan to raise taxes on certain high emission activities, which include additional taxes on heating oil, flights and petrol and diesel for road use.

Swiss to vote on CO2 taxes. How much could it cost?
© Heiko Kueverling | Dreamstime.com

The amount that the proposed taxes would cost an average family range from around CHF 100 to CHF 1,000 depending on who is calculating it. In addition, these calculations are averages, so the additional costs will range widely depending on the number air miles flown, the type of heating a family has and type of car they drive. The calculations assume an average Swiss family is comprised of two parents and two children.

The extra tax on heating oil would come out at around 24 cents per litre, so a family in a mid-sized house consuming 1,500 litres of mazout could end up spending an extra CHF 345. The tax is currently around 25 cents a litre with the potential to rise another 6 cents. The proposed law would allow for a potential additional rise of 24 cents per litre.

Extra tax on fuel used in vehicles could add an extra CHF 100 to average family budgets. This calculation is based on a car consuming 7 litres per 100 km travelling 13,500 km.

Taxes on flights will range from CHF 30 to CHF 120 depending on the length of the flight and class, so a family of four could spend an extra CHF 120 to CHF 480 per trip depending on the destination and class. So a single annual family trip to a medium distance destination in economy class would cost an extra CHF 240 for a family of four.

The proposed laws include redistribution mechanisms that divide up the proceeds and distribute them evenly, so these need to be deducted. The government estimates these will be CHF 320 per year for a family of our.

Adding up the figures above leads to a net figure of an extra CHF 395 a year.

However, according to the Swiss government, the extra cost is estimated to be CHF 97. This is made up of an extra CHF 244 tax on heating oil, an extra CHF 120 for taxes on flights and CHF 53 on running vehicles. For this total of CHF 417, the government calculates a total rebate of CHF 320, leaving a net cost of CHF 97.

The biggest differences are in the amount of heating oil consumed and the annual flight. The government calculation assumes lower heating oil consumption, a combination of differences in assumed living space and consumption per square metre. The difference in car running costs comes down to differences in car fuel efficiency and distance driven. Additional flight costs will range significantly by destination and frequency. The government calculation assumes one short trip a year.

At the other end of the spectrum, the UDC (SVP) estimates the same family would spend an extra CHF 1,000 per year, without offering a detailed calculation.

More information on the opposing arguments can be found here and here. The federal information pack on the vote can be viewed here.

In addition to this weekend’s vote on the proposed CO2 law, there are two votes on pesticides, one attempting to overturn Switzerland’s Covid-19 laws and another attempting to block new antiterrorism laws.

More on this:
RTS article (in French) – Take a 5 minute French test now

For more stories like this on Switzerland follow us on Facebook and Twitter.





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