Switzerland Proposes VAT Increase to Fund Military Spending Amid Defense Threats

Taipei, Taiwan (CNA) - The Swiss government is proposing to increase the value-added tax (VAT) by 0.5% to allocate the revenue specifically to the armament fund and defense expenditures, in response to deteriorating geopolitical situations and military threats. Despite opposition from some political parties, the government hopes to push the plan forward as soon as possible. However, a public opinion poll indicates that only one-third of respondents support increased military spending, and Switzerland will still struggle to establish sufficient air defense capabilities in the short term.

Swiss Defense Minister Martin Pfister stated at a press conference on the 24th that the federal government will advance the plan to raise VAT by 0.5%. He also indicated that due to the worsening geopolitical landscape, the country's financial situation, and the need for funding for military equipment, Switzerland is compelled to take this measure.

Pfister emphasized that the government will establish an armament fund to address hybrid threats such as cyberattacks and disinformation, enhance long-range strike capabilities, and alleviate the pressure of rising prices for defense equipment. Additionally, it will cover the additional expenses for the procurement of a second long-range ground-based air defense system and Patriot systems.

Pfister pointed out that the main military budget will still come from federal finances, not VAT revenue, but the tax increase will provide the government with greater fiscal flexibility. Furthermore, funding support is also needed for departments such as police, intelligence, cybersecurity, and civil defense.

The Swiss Ministry of Defense's VAT increase plan ultimately requires approval from both parliament and the public. Pfister hopes that parliament will debate the military spending issue as soon as possible, as intelligence from the Swiss Ministry of Defense suggests that Russia may possess the capability to attack NATO member states by 2028.

When Pfister first proposed this plan at the beginning of the year, it drew criticism and faced opposition from centrist and left-leaning parties. According to a recent poll conducted by the Military Academy at ETH Zurich, only one-third of Swiss respondents believe the military needs more funding. However, even if parliament and voters agree to raise VAT, Switzerland will still find it difficult to establish adequate air defense capabilities by 2028.

In an interview with Swiss Radio and Television (SRF) on the 22nd of this month, Pfister stated that he no longer considers his mobile phone a secure communication tool and has even deliberately arranged meetings with military generals in the parliamentary air-raid shelter. He expressed the importance of experiencing underground living and feeling the severity of the situation, emphasizing that Switzerland must be prepared for further challenges it may face. (Editor: Tian Rui-hua) 1150625)

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