
Half a percentage point more on VAT in Switzerland, for the next 12 years, to fund spending on armaments and security. This was established by the government, “following the deterioration of the” geopolitical situation, according to a statement from the Federal Council.
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“The additional revenues thus obtained will be exclusively allocated to priority expenditures for the army’s armament,” it reads. This will allow, continues Bern, the necessary investments to improve the protection of the population and the country from the most likely threats, namely hybrid activities and long-distance attacks.
A Fund for armaments capable of contracting debts will increase payment flexibility and help speed up necessary purchases. In its session of August 12, 2026, the Federal Council therefore adopted the message on the “temporary” increase of the value-added tax.
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“Critical gaps in terms of capacity and equipment”
In recent years, the government statement continues, the geopolitical situation and the geopolitical context in which Switzerland finds itself have significantly worsened. Following the savings measures adopted in past decades, the army presents “critical gaps in terms of capacity and equipment – it reads – that limit the possibilities of effectively protecting the country and the population from the consequences of the deterioration of the security situation in Europe.”
In the coming years the army will need 24 billion francs
To defend against the most likely threats, namely hybrid activities and long-distance threats, in the coming years the army will need 24 billion francs to be allocated to additional investments in armament.
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