Federal popular initiative “Energy instead of VAT”

The federal popular initiative “Energy instead of VAT” was a Swiss popular initiative of the Green Liberal Party (glp). The initiative called for the VAT to be replaced by an energy tax on non- renewable energy sources . The Federal Council and Parliament recommended the initiative to be rejected. The initiative was rejected outright on March 8, 2015 by 92 percent of the voters and all cantons.

Starting position

The initiative was launched by the Green Liberal Party in June 2011. According to the text of the initiative, VAT should be replaced by an energy tax on non-renewable energy sources. The tax was calculated per kilowatt hour of primary energy , whereby different tax rates would have been set for the individual energy sources according to their overall ecological balance. A few other optional provisions in the initiative text left the legislature open to design options. There could have been exceptions to full taxation. In order to avoid distortions of competition, the gray energy could have been taxed additively and a refund was provided for export. With regard to the amount of the energy tax, a fixed link to the gross domestic product was planned in order to keep the state quota calculable and the tax quota neutral. Up to around 20 percent of the income would have been used for the benefit of old-age insurance and for premium reductions for health insurance for lower incomes.

Arguments and discussion

The initiative should not be taxed on work and added value, but on energy. In addition to the main goal of an energy transition towards renewable energies, this concern would also have saved high administrative costs for the federal government (approx. CHF 200 million annually) and high administrative costs (approx. CHF 1.3 billion annually for over 300,000 SMEs). The intention of the initiators was to make the energy tax based on the nuclear phase-out after Fukushima and the need for climate policy action neutral, i.e. not to burden the citizens additionally; The goal was a cost-neutral nuclear phase-out . The green liberals intended to exempt consumers and companies from VAT with a business-friendly control system.

The Federal Council and the Council of States generally endorsed the climate and energy policy thrust of the initiative: However, very high energy taxes would be necessary to finance public budgets. In addition, unlike value-added tax, the tax base (tax assessment variable) would become smaller over time because the energy tax would have a steering effect. Fewer and fewer non-renewable energy sources would have to compensate for the 20 billion or more of the lost VAT.

With a target revenue of CHF 20 billion, the initiative assumes a tax of 81 cents per liter of petrol when the tax comes into force in 2020 and expects a decrease in non-renewable energy consumption by around 40% by 2040, which will be offset by a corresponding tax increase would. The demand for energy is inelastic, so it reacts only weakly to price changes, especially since fuel accounts for only a small part of the costs for cars. The Federal Council, however, estimates around 3 francs per liter of petrol a few years after its introduction. This would by far exceed what he believes can be justified in terms of energy and climate policy. The complete abolition of VAT is wrong. The energy tax would also have negative distribution effects, since households with lower incomes would be disproportionately burdened. The position of the initiative was represented in the Council of States by Markus Stadler (GLP / UR), but after the rejection of a counterproposal by a minority committee led by Luc Recordon (Greens / VD) with an incentive tax and reimbursement of the income to the population (29 to 12 votes) the Council of States in June (34: 3) and the National Council (171: 27) in September 2014 also decided to recommend that the people reject the popular initiative. The counter-proposal with energy incentive taxes was rejected in the National Council with 110 to 79 votes. The Federal Council also wants to replace the current funding system for the energy transition from 2021 with a climate and energy control system, and a consultation proposal without the abolition of VAT will be available in 2015.

Initiative text

I
The Federal Constitution is amended as follows:

Art. 130a (new) Energy tax
¹ The Confederation may levy a tax on the import and domestic generation of non-renewable energy. If the energy is exported, the tax is refunded. The tax is calculated per kilowatt hour of primary energy.
² The law can provide for the taxation of gray energy in order to avoid significant distortions of competition.
³ The tax rate is set in such a way that the tax income corresponds to a fixed percentage of the gross domestic product.
⁴ Different tax rates can be set for the individual energy sources due to their overall ecological balance.
^{5 In order} to avoid significant distortions of competition and to simplify tax collection, the law can stipulate exceptions to full taxation.
⁶ If, due to the development of the age structure, the financing of old-age, survivors' and disability insurance is no longer guaranteed, a maximum of 13.1 percent of the tax income can be used for this.
⁷ 5 percent of the non-earmarked income is used to reduce premiums in health insurance for the benefit of lower income groups, unless a different use is stipulated by law to relieve lower income groups.

II
The transitional provisions of the Federal Constitution are changed as follows:

Art. 196 no. 3 para. 2 let. e ^bis (new)
3. Transitional provision to Art. 87 (railways and other modes of transport)
para. 2 let. e ^to
2 The Federal Council can finance major rail projects:
e ^to . Use 1.5 percent of the income from energy tax in accordance with Article 130a;
Art. 197 no. 9 (new)
9. Transitional provision to Art. 130a (energy tax)
¹ When the legislation on Article 130a comes into force, but no later than December 31 of the fifth year after its adoption:
a. Articles 130, 196 number 3 paragraph 2 letter e and 196 number 14 are repealed;
b. Article 134 is amended as follows:
Article 134 Exclusion of cantonal and communal taxation
The cantons and communes may not impose similar taxes on what federal legislation designates as the subject of special consumption taxes, stamp tax and withholding tax or declares it tax-free.
² The fixed percentage of the gross domestic product in Article 130a Paragraph 3 is set in such a way that the income from energy tax corresponds to the average income from VAT in the last five years before it was abolished.
³ If the legislation on Article 130a does not come into force by January 1 of the sixth year after its adoption at the latest, the Federal Council shall regulate the details.

poll

The initiative was rejected outright on March 8, 2015 by 92 percent of the voters and all cantons.

Yes (0 ⁰ / ₂ stands)

No (20 ⁶ / ₂ Scores)

Energy instead of VAT - preliminary official final results

Canton	Yes (%)	No (%)	Participation (%)
Aargau	7.7	92.3	39.8
Appenzell Ausserrhoden	8.0	92.0	48.1
Appenzell Innerrhoden	5.2	94.8	36.9
Basel-Country	8.5	91.5	36.2
Basel city	14.0	86.0	42.8
Bern	8.5	91.5	38.4
Freiburg	5.6	94.4	45.1
Geneva	9.1	90.9	47.2
Glarus	6.4	93.6	33.4
Grisons	6.9	93.1	37.1
law	5.9	94.1	38.7
Lucerne	8.4	91.6	45.1
Neuchâtel	5.9	94.1	41.3
Nidwalden	6.0	94.0	50.9
Obwalden	5.9	94.1	44.6
Schaffhausen	10.9	89.1	65.0
Schwyz	6.2	93.8	43.1
Solothurn	7.5	92.5	39.9
St. Gallen	7.3	92.7	42.0
Ticino	6.8	93.2	40.2
Thurgau	8.3	91.7	44.0
Uri	6.0	94.0	35.2
Vaud	5.7	94.3	45.0
Valais	3.9	96.1	47.7
train	7.6	92.4	46.6
Zurich	10.9	89.1	41.3
Swiss Confederation	8th	92	41.6

See also

• Federal popular initiative "for a secure AHV - tax energy instead of work!" (Rejected in 2001)

Web links

• Popular initiative “Energy instead of VAT” , website of the initiative committee
• Federal popular initiative “Energy instead of VAT” on the Federal Chancellery website
• Information on the initiative on parlament.ch , with a link to the Federal Council's message and debates in parliament

Individual evidence

1. ↑ ^{a b c} Energiewende now - because it makes ecological, but also economic sense ( memento of the original from October 6, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 2 pages), media release on energy policy, Green Liberal Party, June 8, 2011, accessed on September 30, 2014. 
2. ↑ Text of the popular initiative of the Green Liberal Party Switzerland "Energy instead of VAT" at admin.ch (Swiss Federal Chancellery), accessed on September 30, 2014.
3. ↑ The value added tax is inefficient & not useful - contribution to the popular initiative "Energy instead of value added tax"
4. ↑ Roland Fischer : People's initiative "Energy instead of VAT" ( Memento of the original from October 2, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Media release from September 25, 2014, In: Grünliberale Party, accessed on September 30, 2014. 
5. ↑ How the green liberals broke the energy tax. In: Infosperber , June 18, 2014, accessed on February 12, 2015.
6. ↑ Message of November 20, 2013 on the popular initiative “Energy instead of VAT” (BBl 2013 9025) Summary of the debates in the Council of States and the National Council, The Federal Assembly - Swiss Parliament, November 20, 2013, added June 17, 2014 and September 25, 2014 , accessed September 30, 2014.
7. ↑ Popular initiative of December 17, 2012 “Energy instead of VAT” . Swiss Federal Chancellery, accessed on March 16, 2015 .