- The Swiss government proposes a temporary 0.8 percentage point VAT increase for 10 years starting in 2028 to fund military spending.
- Additional VAT revenue will go to a dedicated military procurement fund, which must be debt-free after 10 years.
- The proposal requires parliamentary approval and a national referendum, with a vote expected in summer 2027.
- The VAT increase is being considered alongside other fiscal measures, including pension funding and tax reforms.
- The government chose a VAT increase as the least disruptive way to raise CHF 31 billion needed for military modernization.
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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