Increasing VAT to benefit the army and the AHV: The idea is gaining momentum. The business umbrella organization Economiesuisse is in favor of the step – FDP leader Thierry Burkart signals openness.
The idea was launched by Benedikt Würth, a member of the Council of States from the center: VAT is to increase by one percentage point for five years. Part of the additional revenue will go to the AHV and finance the 13th monthly pension, while the other part will be used to upgrade the army.
The Council of States will discuss the idea for the first time the week after next and now the proposal is gaining momentum: the business umbrella organization Economiesuisse recommends a yes vote to the higher VAT. In view of the high financial requirements for both the AHV and the army, the association writes in its voting recommendations to the Council of States that it considers the idea to be a fundamentally viable option.
However, the condition is that all savings measures are exhausted at the same time. Swissmem, the association of the mechanical, electrical and metal industries, also recommends that Parliament vote yes to the higher VAT. This would enable the army to be quickly adapted to the new security situation.
Burkart: «Don’t turn it down»
There is also movement in politics. In the “Saturday Review” on Radio SRF, FDP President Thierry Burkart stressed: “Army rearmament can be financed through austerity measures alone. But for that to happen, Parliament would have to implement all the austerity proposals that the expert group presented this week.” The FDP will fight for this.
With a higher VAT, the army could be quickly adapted to the new security situation, says Swissmem.
Keystone/ Peter Klaunzer
If it doesn’t work out, it remains to be seen whether the FDP will be in favor of a higher VAT: “I’m definitely not turning it down at the moment.” Burkart is thus leaving the door more open for a VAT increase than ever before. However, he wants to keep the pressure on savings high for as long as possible and is not yet making a decision.
“But it is clear that we have to find a solution this year or next year at the latest,” says Burkart. Otherwise, time will be running out. The Federal Council had already struck a surprisingly positive tone on Wednesday. Financing the army through a higher value added tax is a possible solution, he wrote.
Referendum mandatory
An increase in VAT by one percentage point would lead to higher prices – consumption would be burdened with an additional 3.5 billion. Left-wing parties criticize the fact that VAT places a relatively higher burden on people with low incomes than on people with high incomes. Because the tax rates are set out in the constitution, an increase requires a vote by a majority of the cantons.