Vaud authorities oppose tax initiative and face industrial backlash

The Vaud Cantonal Government has recommended that citizens vote against the ‘12% initiative’ during the September 27 referendum. The proposal, supported by the Vaud Employers' Federation and various industry chambers, seeks to reduce cantonal income and wealth taxes. Government ministers Christelle Luisier, Frédéric Borloz, and Roger Nordmann described the initiative as excessive.

In response, the State Council has proposed an alternative ‘purchasing power plan.’ This plan includes a progressive reduction of cantonal income tax (4% in 2025, 5% in 2026, and 7% from 2027) and increased tax deductions for health insurance premiums and childcare costs. Officials claim this alternative is better targeted toward the middle class and represents an annual relief of approximately 365 million francs starting in 2027.

Separately, industrial sectors in Vaud are expressing frustration over the ‘Lex On’ amendment to the Swissness law. The amendment allows the Zurich-based group On to use the Swiss cross on footwear manufactured in Asia. Local industry representatives view this change as a threat to the regional ecosystem, which accounts for nearly 10% of Swiss industrial jobs.