- Switzerland is considering a 0.5 percentage point VAT increase to fund accelerated defence spending.
- The VAT rate is already set to rise from 8.1% to 8.8% by 2028 for pension funding.
- The proposal is driven by concerns over European security and potential Russian aggression.
- Increasing VAT for defence is politically sensitive and would require public approval via referendum.
- The government aims for military spending to reach 1% of GDP by 2032.
Source: vatcalc.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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