Switzerland Considers VAT Hike to Fund 13th AHV Pension Expansion in 2026

• Switzerland plans to implement the 13th AHV old-age pension annually from 2026
• The move is expected to cost CHF 4.2 billion in the first year
• The government is considering financing options, including a VAT increase
• The proposed VAT increase is 0.4 percentage points
• Switzerland’s current VAT rate is 8.1%, lower than many other European countries
• The government is committed to sustainable financing for the pension expansion
• Plans to present financing options and broader pension reform proposal to parliament this year
• Structural measures such as raising the retirement age are being considered

Source: globalvatcompliance.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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