Civic duty and inheritance tax: A guide to the Swiss referendums on November 30

On Sunday, November 30, Swiss residents who can vote will take to the polls for the final time this year. Two items are on the referendum agenda: changes to civic duty and an inheritance tax to fund Switzerland’s climate policy.

The Civic Duty Initiative 

The Civic Duty Initiative, “For a civically engaged Switzerland”, was submitted by the Service Citoyen Initiative in 2023 with 107.613 signatures. The initiative aims to change civic duty in Switzerland. 

What is the Civic Duty Initiative?

Currently, all male Swiss citizens are conscripted into military or civilian service, typically between the ages of 18 and 35 years old. People who object to compulsory military service can perform medical or administrative service in the military, or take part in the Swiss civilian service, which could include roles in development projects or healthcare.

If neither military nor civilian service is fulfilled, a person must make a financial contribution to the government through taxes. This is usually 3 percent of a person’s annual salary until the age of 37 years old. Women who are Swiss citizens can volunteer for military or civilian service, but civic duty is not compulsory. 

The Civic Duty Initiative proposes amending civic service in Switzerland. As part of the proposal, all Swiss citizens, men and women, will have to perform “a service for the benefit of the community and the environment”. This could be in the military or additional civilian services, including disaster relief, healthcare, cyber defence or education. 

The initiative would ensure that the level of armed forces and civil protection required for “crisis intervention services” is guaranteed. The proposal would also still require people who do not perform civic duty to pay tax.

What are the arguments for and against?

Supporters of the proposal argue that it is a good step towards equality: "Women will be able, like men, to expand their network and acquire important skills," says National Councillor Christine Badertscher. Taking part in military or civilian service will “strengthen [women's] position in the labour market and in society," continued Badertscher, reported by RTS. 

Opponents of the initiative, including the Federal Council and Parliament, are concerned about the potential economic impact. If the initiative passes, more people will take time out of work to perform civic duty. According to SRF, the number of people recruited to perform civic duty would increase from 35.000 per year to 70.000. 

Defence Minister Martin Pfister argues that these numbers “far exceed the needs of the army and the Central Police.” Furthermore, the cost to companies would also double, continues SRF. The loss of earnings compensation would increase to 1,6 billion Swiss francs, and military insurance to 320 million Swiss francs.

Eight of the largest political parties in Switzerland have shared recommendations on how to vote on the initiative. Only two parties, the EVP and GLP, recommended voting in favour.

What is the expected outcome?

An SRF survey conducted in October found that there is “no clear verdict yet” on the potential outcome of the referendum. 48 percent of eligible voters who responded to the survey said they would vote yes, while 46 percent said they would vote no.

Initiative for a Future

The second national issue being voted on on November 30 is the proposed introduction of a federal inheritance tax. The initiative “For a social climate policy - financed fairly through taxation” was proposed by JUSO, the Young Socialists of Switzerland. 

What is the Initiative for a Future?

The proposal wants to introduce a 50 percent federal inheritance tax on estates and gifts worth over 50 million Swiss francs. The money raised through the new tax would help “combat the climate crisis in a socially just manner and to restructure the economy as a whole as necessary to achieve this goal”. 

The federal government would receive two-thirds of the revenue raised through the tax, and the Swiss cantons the other third. Currently, inheritance tax is implemented only at cantonal and municipal levels. 

What are the arguments for and against?

Backers of the proposal argue that wealthy people in Switzerland contribute more to climate change through their lifestyles and should therefore contribute more financially. JUSO President Mirjam Hostetmann said to SRF: “The super-rich are profiting significantly from the climate crisis, be it with their private jets and yachts, but also with climate-damaging investments."

According to SRF, the Federal Council and Parliament recommended rejecting the proposed initiative. In the National Council, 132 members voted against and 57 in favour, with 8 abstentions. In the Council of States, 36 rejected the proposal and 7 were in favour.

The government recommends rejecting the initiative because it would likely result in wealthy people leaving Switzerland, therefore reducing the potential revenue from the new tax. Furthermore, the Federal Council argued that the federal government already provides funding for its climate policy.

Only two political parties in Switzerland recommend voting for the initiative, the Green Party and the SP. The other six major parties recommend voting against the proposal.

What is the expected outcome?

In the latest survey asking potential voters how they would cast their ballot, 62 percent said they are against the initiative and 35 percent said they support it. The survey results “do not bode well for the initiative”, reports SRF.