Swiss Parliament votes for VAT rise to hit consumers

Swiss Parliament votes for VAT rise to hit consumers

05 June 2013

The Swiss lower house of Parliament voted yesterday to increase the standard VAT rate from 8% to 8.1% from 2018 to 2030. The move had already been approved by the upper house, the Senate.

The VAT rise is required to fund much-needed upgrades to the overcrowded Swiss national rail system. The rail industry believes it may need a larger VAT rise to meet the investment planned for the overhaul.

The current 8% Swiss VAT rate was set as a temporary rate from the start of 2011. It had been intended that the rate would return to 7.6% in 2018.

Richard Asquith, Head of Tax at TMF Group, commented:

"Whilst Switzerland has avoided the worst of the economic crisis, its taxes are still having to rise gradually to meet a spiralling public budget. Aside from depressing local spend, it creates an administrative and IT problem for local and multi-national corporations." tel:+44 (0)79 777 23645

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