In view of the deteriorating geopolitical situation, the Federal Council wants to strengthen Switzerland's security and defense. A temporary increase in value-added tax is intended to provide the army and security-related federal offices with the financial resources they need to better protect the population and the country against the most likely threats. The Federal Council opened the consultation process on this matter at its meeting on March 6, 2026.
The global security situation and Switzerland's environment have deteriorated in recent years.
To ensure that the population and the country can once again be adequately protected against these threats, on January 28, 2026, the Federal Council set the parameters for financing the strengthening of Switzerland's security and defense. The plan is to increase VAT by 0.8 percentage points from 2028 for a period of ten years.
The proposal requires an amendment to the Federal Constitution, a new law on the armament fund, and adjustments to the Value Added Tax Act. The consultation period will last until the end of May 2026. The aim is to hold a referendum on the constitutional amendment in the summer of 2027 so that the temporary VAT increase can come into force on January 1, 2028.
The press release and other documents can be found here.
