Berne Thun city parliament cuts taxes

The city of Thun wants to reduce taxes in the coming year. The tax rate is to fall from 1.72 to 1.66 units, as decided by the city council on Thursday as part of the debate on the 2025 budget. The people will have the final say at the ballot box.

The tax reduction itself was not disputed by the city council. What was disputed was the extent. The municipal council presented parliament with a balanced budget for 2025 with total expenditure and income of CHF 327.3 million each. The budget is based on a reduction in the tax rate of 1.66 units.

This reduction to 1.66 units is the result of a careful and forward-looking process, emphasized municipal councillor Andrea de Meuron (Greens). The city had solid finances, which made it possible to change the tax rate again for the first time in 30 years. This was almost a historic moment.

However, De Meuron warned against further demands, as the city does not want to run up a structural deficit, as has happened to other Bernese municipalities following tax cuts. The municipality also wants and needs to be able to make investments in the future.

Numerous demands from left to right

The parliamentary groups put forward a whole host of proposals, with demands ranging from a tax rate of 1.60 to 1.69. The conservative side wanted a greater reduction, the left-green side less so, while the center parties backed the municipal council.

Tax revenues have always been higher than budgeted in recent years, said SVP parliamentary group spokesman Thomas Bieri. The economic development was positive and real wages were rising, added Mark van Wijk on behalf of the FDP/Mitte parliamentary group.

The GLP/EPP/EDU parliamentary group said that everything was becoming more expensive, so it would be good if something became cheaper. However, they did not want to go any lower than the municipal council. The city has significant investments to make in the coming years.

The Greens would have liked to see fewer cuts and instead put the money into a fund for climate efficiency. Green city councillor Thomas Hiltpold used the debate to "bury" the existing tax rate of 1.72 "in style". This rate had made it possible for the city of Thun to be financially sound today and to reduce debt. Now the town could take some of the tax burden off the shoulders of the people of Thun in a quasi-anticyclical manner.

At the end of a cascade of votes, the municipal council's proposal prevailed with a reduction to 1.66 units. In the end, parliament approved the budget by 34 votes to 2. As the budget contains a tax reduction, it still has to be put to the people.

The average tax rate for all municipalities in the canton of Bern was 1.71 units in 2024.

SDA