Swiss oppose VAT increase to fund army, says poll

Public rejects VAT increase, says poll Keystone-SDA

In a poll, the Swiss people have come out against an increase in value-added tax (VAT) in favour of the army or the 13th month of old-age pension (AHV/AVS). These are the findings of a poll conducted on behalf of the newspaper Blick.

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More than three quarters of the 15,000 or so people surveyed in German- and French-speaking Switzerland were against a temporary 0.8 percentage point increase in value added tax (VAT) to provide more funds for the army, as shown in a graph published on Tuesday by the German-language version of blick.ch.

An increase in VAT is also being considered to finance the 13th monthly AHV/AVS pension. Respondents were opposed to this measure. Two-thirds of those questioned clearly or somewhat rejected an increase of 0.7 percentage points, as the graph shows. Some 21% of those questioned were “somewhat in favour” and 13% “clearly in favour”.

According to Blick, the Sotomo research institute conducted the survey in collaboration with the newspaper. Between January 31 and February 6, 15,153 people took part. The margin of error is +/- 1.3%.

Rejection from left to right

The clearest opposition to such an increase came from supporters of the Green party, as another graph shows. The majority of both the Social Democratic party (SP) and Swiss People’s party (SVP) voters were also clearly opposed to an increase to finance the additional budget for the army and security. The majority of voters in the Radical Liberal and the Liberal Green parties were either somewhat or clearly opposed. Support for the proposal was strongest among Centre party supporters, with 45% clearly or somewhat in favour.

These responses are in line with the positions expressed by the parties at the end of January regarding the government’s proposal to increase VAT from 8.1% to 8.9%. From left to right, the parties rejected an increase in VAT for the army, with the exception of the Centre, which was in favour.

The survey also revealed scepticism about how the army would use the additional funds. A majority of those questioned did not believe that the army would be able to use these resources wisely and effectively. Around two-thirds answered “no” or “rather no” to this question.

Disagreement with the Minister of Defence

Parliament’s plan to increase spending on the armed forces to 1% of gross domestic product (GDP) by 2032 was considered appropriate by 42% of respondents. For 44% of them, such an increase would be excessive, while 14% felt it did not go far enough.

The survey highlights a discrepancy between the majority opinion of those questioned and that of Defence Minister Martin Pfister. In his view, the increase in spending decided by Parliament is insufficient in the face of the deteriorating security situation. He stated this to the media in Bern at the end of January.

Additional revenue would be needed for the armed forces and for the civilian federal services responsible for security tasks, such as the intelligence service, the police and border protection.

The additional financial requirement, estimated at CHF31 billion ($40.4 billion) from 2028, would be covered by a temporary, earmarked VAT increase of 0.8 percentage points over ten years. The funds would be paid into an armaments fund authorised to take on debt.

The Federal Department of Defence is due to present a proposal by the end of March, which will be taken up by Parliament by the end of the year. The final say will rest with the people and the cantons. A vote is scheduled for summer 2027, shortly before the federal elections.

VAT increase for the 13th old-age pension also rejected

An increase in VAT is also being considered in another area: the financing of the 13th AHV/AVS pension. Parliament is currently debating this issue. The 13th pension was approved by the Swiss people in a nationwide vote on March 3, 2024. Following the government’s proposal, the House of Representatives decided last September on a provisional VAT increase of 0.7 percentage points until 2030. The Senate has yet to take a decision.

Here too, the majority of respondents to the survey published by Blick were not very enthusiastic. Two-thirds of those questioned clearly rejected or were rather opposed to a VAT increase in favour of the 13th AHV/AVS pension. On the other hand, 21% were “somewhat in favour” and 13% “clearly in favour”.

VAT brings in around CHF30 billion a year to Switzerland, making it the second most important source of revenue, accounting for almost a third of total income. It mainly finances federal expenditure, in particular AHV/AVS, general government administration, transport, education, agriculture and international cooperation.

Translated from German by AI/jdp

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