Swiss Government Proposes VAT Hike to Fund Increased Defense Spending
Citing a heightened European threat landscape, the Swiss government plans to temporarily increase the value-added tax (VAT) by 0.8 percentage points from 2028 to finance a significant strengthening of the nation's defense capabilities.

Key Takeaways
- The Swiss government proposes increasing VAT by 0.8 percentage points starting in 2028.
- The proposed VAT hike aims to strengthen national defense due to a heightened threat situation involving Russia.
- Any tax increase in Switzerland requires a constitutional amendment and approval by the people.
- Switzerland currently has the lowest VAT rate in Europe.
By The Numbers
They Said
"Switzerland is also affected by these developments and is already confronted with hybrid conflict management."
"Every tax increase must be approved by the people as a constitutional amendment."