Switzerland’s government is weighing a rise in value-added tax to help fund a rapid expansion of the armed forces, reported RTS. According to the Tages-Anzeiger, the proposal—an increase of 0.5 percentage points—was floated by Martin Pfister, the defence minister, amid growing anxiety about Europe’s security and the risk of further Russian aggression.
Pfister argues that Switzerland must rebuild its military capacity faster than planned. At a cabinet meeting on security last week, he reportedly warned that Russia could mount a new attack somewhere in Europe as early as 2028 or 2029. A VAT increase, he believes, could provide a stable source of funding for the effort.
The idea has drawn sharp criticism from the left. Pierre-Alain Fridez, a Socialist Party MP on parliament’s security committee, dismisses the timetable as implausible and the financing plan as premature. Even if approved, he notes, a tax rise would not take effect before 2028, while many existing defence projects remain unfinished. Predictions of an imminent Russian assault, he adds, resemble political alarmism more than strategic analysis.
The centre-right is more sympathetic. Benedikt Würth, a member of the upper house for the Centre party, has previously called for a VAT increase to underpin higher defence spending. Restoring Switzerland’s defensive capability, he argues, should rank as one of Bern’s top political priorities.
Using VAT to finance major policy goals is a familiar tactic in Switzerland, having previously been deployed for pensions and rail infrastructure. But the hurdle remains high. Any tax increase must be approved by referendum, and opinion polls suggest voters remain sceptical about devoting substantially more money to defence.
Spending will rise regardless. The government’s stated aim is for military outlays to reach 1% of GDP by 2032—a level that would still leave Switzerland modestly armed by European standards.
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RTS article (in French) – Take a 5 minute French test now
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