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Swiss parties skeptical about VAT hike for army spending

GenevaTimes by GenevaTimes
May 31, 2026
in Switzerland
Reading Time: 9 mins read
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Swiss parties skeptical about VAT hike for army spending
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Many reservations about VAT increase for defence spending

Hunting for funds: Swiss Defence Minister Martin Pfister.


Keystone-SDA

The government’s proposed VAT increase to finance defence spending has been rather poorly received in a consultation process which ended on Saturday. Almost all political parties are critical of the idea.





Generated with artificial intelligence.


This content was published on


May 31, 2026 – 10:58

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Only the Centre Party is unreservedly behind the government’s plans to increase VAT by 0.8 percentage points for a limited period of ten years to finance army spending.

The centre-right Radical-Liberal Party, for its part, is in favour of a fund to finance the army’s defence spending; however, it rejects “in no uncertain terms” the idea of doing this by increasing VAT.

More

As multifunctional as VAT: Swiss Army knife with 87 tools and 141 functions.

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Swiss Politics

Value added tax: the Swiss government’s all-purpose tool




This content was published on


Jan 28, 2026



Switzerland has the lowest VAT rate in Europe. Now the Swiss government wants to increase it to pay for national defence.



Read more: Value added tax: the Swiss government’s all-purpose tool


The right-wing People’s Party is also against the VAT increase and wants to reallocate funds instead, while the Liberal Greens want to make less money available. The Greens don’t want any increase in the army budget at all.

The left-wing Social Democrats are also against the VAT increase and are calling for other options.

Adapted from German by AI/dos

We select the most relevant news for an international audience and use automatic translation tools to translate them into English. A journalist then reviews the translation for clarity and accuracy before publication.  

Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.

If you have any questions about how we work, write to us at english@swissinfo.ch

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