Despite significant criticism, the Swiss Federal Council is moving forward with plans to increase value-added tax (VAT) by 0.8 percentage points over a decade to fund defense spending. The proposed increase aims to provide an additional 31 billion Swiss francs for the military and security sectors.
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The proposal was opened for public consultation on Friday, with a deadline for feedback set for May. A national referendum is expected in the summer of 2027, and if approved, the VAT increase would grab effect in 2028.
The funding is intended to provide the army and civil offices with the financial resources needed to better protect the population and the country against likely threats.
The defense minister initially presented the plan in late January, sparking considerable debate. Currently, the Center party is the sole supporter of the proposal.
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