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VAT set to rise by 0.5 percentage points from 2028

The Federal Council has sent Parliament its dispatch on a temporary VAT increase to fund the army.

The standard rate is to rise by 0.5 percentage points for 12 years, from 8.1 to 8.6 percent. The special rate for accommodation is to rise by 0.3 percentage points. The reduced rate, for example for food and medicines, stays the same. The Federal Council had originally proposed 0.8 percentage points for 10 years.

Nothing has been decided yet: Parliament debates it first, then a popular vote is required. The planned start is 2028.

Source: Der Bundesrat (admin.ch) ↗
Summary by our editors. The linked original source is authoritative.

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