Politics · Switzerland · 9 hrs ago
Swiss committee rejects VAT rise to fund army purchases
A Swiss parliamentary committee rejected a government plan to raise VAT to pay for army purchases.
The National Council’s Security Policy Committee backed a different way to fund the proposed Security and Defence Fund.
The committee says more money for military equipment is urgently needed because of the security situation and its risks.
Its alternative would provide about 1.3 billion Swiss francs a year, including money from existing VAT revenue, unused budget credits, cuts to international cooperation and a smaller share of federal income tax for the cantons.
The fund would run for 18 years and total 24 billion francs, and could borrow up to 6 billion francs.
The Senate has backed a different mixed plan that includes temporary VAT increases, while the government proposed a larger increase.
The National Council will decide in its winter session, and the committee’s funding plan faces opposition from some members and may meet resistance from the cantons.
The National Council’s Security Policy Committee rejected a proposed value-added tax increase to fund army purchases.
By 15 votes to 9, it backed an alternative financing plan for a security and defence fund.
The plan would provide about 1.3 billion Swiss francs a year from several sources, including federal funds and reduced transfers to cantons.
The committee’s minority opposed the plan, while arguing that lessons should first be learned from problems with previous arms procurement.
The National Council is due to decide during its winter session.
- Who
- The National Council’s Security Policy Committee (SIK-N).
- What
- It rejected a proposed VAT increase and approved an alternative plan to finance army purchases.
- When
- The decision was reported on Tuesday, 3 November 2026.
- Where
- Switzerland.
- Why
- The committee majority said the VAT increase was unlikely to win majority support and backed other funding sources for the army.
SIK-N committee majority
SIK-N committee minority
VAT increase
SIK-N committee majority
The proposed increase is unlikely to win majority support.
SIK-N committee minority
The sources do not state the minority’s view on the VAT increase.
Alternative funding plan
SIK-N committee majority
It approved the plan, saying additional army procurement funds are urgently needed given the security situation.
SIK-N committee minority
It rejected the majority’s financing plan and opposed cuts to international cooperation spending.
Arms procurement
SIK-N committee majority
More funding for army purchases is necessary.
SIK-N committee minority
Lessons should first be learned from problems with previous arms procurement, and more arms do not necessarily mean greater security.
The National Council Finance Committee rejected a VAT increase in a report.
The SIK-N approved its alternative financing plan by 15 votes to 9.
The National Council is due to decide on the proposal.
- Committee vote
- 15 to 9
- Annual fund allocation
- About 1.3 billion Swiss francs
- Proposed annual funding
- 400 million francs from existing VAT revenue; 330 million from unused budgeted credits; 200 million in international cooperation savings; 400 million less for cantons from direct federal tax
- Fund duration
- 18 years
- Fund total
- 24 billion Swiss francs
- Borrowing limit
- Up to 6 billion Swiss francs in treasury loans
What people are saying
unabdingbar und dringend
Mehr Rüstungsgüter brächten nicht zwingend mehr Sicherheit.