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Federal Council Proposes Temporary VAT Increase to Boost Switzerland’s Security and Defense Funding

  • The Federal Council proposes a temporary VAT increase to strengthen Switzerland’s security and defense.
  • The VAT would rise by 0.8 percentage points from 2028 for ten years.
  • This measure aims to provide additional funding for the army and security-related federal offices.
  • The proposal requires constitutional and legal amendments, with a consultation period open until the end of May 2026.
  • A referendum on the constitutional amendment is planned for summer 2027, targeting implementation by January 1, 2028.

Source: en.taxlawblog.ch

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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