The Federal Council intends to strengthen Switzerland’s security and defense and, to that end, temporarily increase the value-added tax. At its meeting on June 24, 2026, it adopted further resolutions on this matter. To minimize the burden on the population and the economy and to take the results of the public consultation into account, it is reducing the planned increase in the standard rate from 0.8 to 0.5 percentage points and is not adjusting the reduced rate for food and medicine.
The additional revenue is allocated entirely to the army’s defense spending. Other security expenditures are financed through the federal budget. The defense fund, which is authorized to incur debt, is largely uncontroversial, as it is intended to expedite urgent procurements and rapidly improve Switzerland’s security.
The press release is available here .
