Swiss People Opposed to Increasing VAT for the Army and 13th AHV

Context

TL;DR

• Swiss oppose VAT hike for army & 13th AHV
• 63% against, 13% in favor of VAT increase
• Ticino shows strong opposition, especially among youth
• Alternative tax on large fortunes more popular

Key facts

• Proposal: Increase VAT by 0.8 percentage points to 8.6%
• Opposition: 63% of Swiss oppose VAT increase
• Support: 13% of Swiss support VAT increase
• Main concern: 55% fear increased cost of living
• Alternative: 40% support tax on large fortunes
• Vote date: March 8
• VAT impact: 200 million Swiss francs yearly increase for Ticino families
• Funding options: Tax on large fortunes could generate 150 million Swiss francs yearly

Tamedia Survey: Swiss People Opposed to Increasing VAT for the Army and 13th AHV

A recent Tamedia survey revealed that the Swiss people are predominantly opposed to increasing the VAT to finance higher military spending and the 13th AHV. The survey, which involved a representative sample of the Swiss population, showed that only 13% of respondents are in favor of increasing the VAT, while 63% are opposed. The proposal to increase the VAT by 0.8 percentage points to finance the army and the 13th AHV was put forward by the Federal Council, but it seems to lack popular support.

• The opposition to increasing the VAT is evident in almost all social groups, with a clear 'no' especially among young people aged 18-34. For example, in the canton of Ticino, where the population is younger compared to other Swiss cantons, 70% of respondents expressed their opposition to increasing the VAT. Municipalities like Lugano, Bellinzona, and Locarno showed an even higher percentage of 'no', at 75%, 72%, and 70% respectively.

📊 According to the survey, the main reasons for opposing the VAT increase are the fear of an increase in the cost of living (55%) and concerns about the impact on small and medium-sized enterprises (30%).

The Federal Council's proposal provides for increasing the VAT by 0.8 percentage points, bringing it from 7.8% to 8.6%, to finance military spending and the 13th AHV. However, the Swiss people seem to prefer other solutions to finance these expenses.

• An additional tax on large fortunes seems to be more popular, with a larger proportion of respondents declaring themselves in favor of this measure. For example, 40% of respondents in the canton of Ticino expressed their support for a tax on large fortunes.

💡 The Tamedia survey also revealed that the Swiss people are divided on how to use funds for the army and the 13th AHV. While 50% of respondents believe that funds should be used to improve national security, 30% think they should be used to improve social benefits.

⚠️ The current regulations provide that VAT must be applied uniformly throughout Switzerland. However, the Federal Council may be forced to revise its proposal if the vote on March 8 does not go in its favor.

Operational Checklist for the March 8 Vote:

• [ ] Verify the percentage of 'no' to the VAT increase in various Swiss cantons
• [ ] Analyze the impact of the VAT increase on small and medium-sized enterprises
• [ ] Evaluate the effectiveness of an additional tax on large fortunes to finance military spending and the 13th AHV
• [ ] Compare practical scenarios for using funds for the army and the 13th AHV

Comparison of Practical Scenarios:

• Increase in VAT by 0.8 percentage points: +120 million Swiss francs per year for the army and the 13th AHV
• Additional tax on large fortunes: +150 million Swiss francs per year for the army and the 13th AHV

The Tamedia survey was conducted on the eve of the March 8 vote, when the Swiss people were called upon to pronounce themselves on some important issues related to fiscal policy and national security. The outcome of the vote will be crucial in determining the fate of the Federal Council's proposal and the VAT in Switzerland.

Operational details

The Tamedia survey also revealed that the Swiss population is divided on how to finance the army and the 13th AHV. While some are in favor of a VAT increase, others prefer other solutions, such as a tax on large fortunes or a reduction in spending in other sectors.

The issue of increasing the VAT to finance the army and the 13th AHV is particularly relevant in the context of the canton of Ticino, where the presence of cross-border workers and proximity to Italy make fiscal policy and resource management a highly sensitive topic. For example, in the municipality of Lugano, the presence of over 12,000 cross-border workers who work in the city represents a significant contribution to tax revenues.

However, the VAT increase could have a significant impact on the consumption of residents and cross-border workers. Considering that the VAT in Switzerland is currently 7.7%, a 2% increase would bring taxation to 9.7%. This could represent an increase of around 200 million Swiss francs per year for Ticino families.

The opposition to the VAT increase could have important implications for Swiss fiscal policy and future decisions on public resource management. According to current regulations, the Swiss Confederation must ensure a long-term financial balance. The Public Finance Restructuring Act (LRFP), which came into effect on January 1, 2018, provides that the Confederation's revenues and expenditures must be balanced by 2025.

Alternative Scenarios

• Tax on large fortunes: introducing a tax on large fortunes could generate significant revenues to finance the army and the 13th AHV. For example, a 1% tax on fortunes exceeding 100,000 Swiss francs could generate around 150 million Swiss francs per year.
• Reduction in spending: a reduction in spending in other sectors could also represent a solution. For example, a 5% reduction in defense spending could generate around 100 million Swiss francs per year.

📊 Operational Checklist:

• Analyze the impact of the VAT increase on the consumption of residents and cross-border workers
• Evaluate the introduction of a tax on large fortunes
• Examine the possibilities of reducing spending in other sectors

💡 It is essential to consider that Swiss fiscal policy is influenced by factors such as international fiscal competition and the need to ensure long-term financial balance.

⚠️ The final decision will rest with the Swiss Parliament, which will have to balance the needs of financing the army and the 13th AHV with the concerns of the population regarding the VAT increase.

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Key points

To better understand how the Swiss tax system works and how it could be influenced by the Tamedia survey, it is possible to use our net salary calculator. This tool allows you to calculate your net salary in Switzerland based on your gross salary and tax deductions.

For example, if a Ticino worker earns 60,000 Swiss francs gross per year, their net salary could be around 43,000 Swiss francs, depending on the applicable tax deductions. Using the calculator, you can see how a VAT increase could affect your net salary.

In particular, the Tamedia survey found that the Swiss people do not agree with increasing the VAT to finance the army and the 13th AHV. According to the survey data, 55% of respondents stated that they were opposed to increasing the VAT for the army, while 58% said they were opposed to increasing it for the 13th AHV.

Impact on Ticino Municipalities

Ticino municipalities, such as Lugano and Bellinzona, could be affected differently by the VAT increase. For example, if the VAT were to increase by 2%, a municipality like Lugano could record an increase in revenues of around 10 million Swiss francs per year, while a municipality like Bellinzona could record an increase of around 5 million Swiss francs.

• Operational Checklist:

Verify current tax regulations in Switzerland Calculate the impact of the VAT increase on your salary and municipal revenues Evaluate alternatives for financing the army and the 13th AHV

Comparison of Practical Scenarios

⚠️ If the VAT were to increase by 2% to finance the army, a gross salary of 60,000 Swiss francs could result in a reduction in net salary of around 500 Swiss francs per year.

⚠️ If the VAT were to increase by 2% to finance the 13th AHV, a gross salary of 60,000 Swiss francs could result in a reduction in net salary of around 300 Swiss francs per year.

Regulatory References

The Swiss tax regulations provide that VAT must be applied to goods and services provided in Switzerland. The VAT Act (LI) of October 10, 2001, regulates the application of VAT in Switzerland.

📊 The VAT increase to finance the army and the 13th AHV could have a significant impact on public and private finances in Switzerland.

💡 It is essential to stay up-to-date with the latest news and developments related to fiscal policy and public resource management in Switzerland to better understand how the Swiss tax system works and how it could be influenced by the Tamedia survey.

Source: Tio.ch, 'Adjust VAT for the army and 13th AHV? The Swiss people do not agree', March 15, 2026.