Relief Package 27: no weakening of the three-pillar system
On 20 September 2024, the Federal Council proposed benchmarks for a savings package (‘Relief Package 27’). This included the abolition of the preferential tax treatment of pillar 2 and 3 capital withdrawals over drawing a pension.
The SIA opposes the abolition of the preferential tax treatment of pillar 2 and 3 capital withdrawals over drawing a pension.
The SIA understands that, according to the federal budget’s current financial forecasts, relief measures are necessary and supports the expenditure-related measures. Despite widespread criticism during the consultation process, the Federal Council is upholding the tax increase for capital withdrawals.
An expenditure problem, not a revenue one
The SIA is firmly of the opinion that the federal budget has an expenditure problem, not a revenue problem. The imposition of additional taxes at the expense of large sections of the population and people in difficult life circumstances sends the wrong signals in terms of financial and social policy.
Attack on the three-pillar system
The SIA resolutely opposes the inappropriate tax increase on pension capital withdrawals. This particularly affects SMEs and people in difficult life circumstances. The necessary fiscal consolidation of the federal government should be achieved through savings on the expenditure side.
The bill runs counter to the federal government’s constitutional mandate, jeopardises legal certainty and weakens the three-pillar system. In addition, the financial benefit is questionable, and the consequence would be falling pension levels.
