Switzerland Plans VAT Increase for 10 Years to Revamp Military

Switzerland plans a temporary increase of its value-added tax to boost spending for the military.

To finance a revamp of outdated equipment amid a deteriorating European security landscape, the government is proposing to raise the country’s sales tax by 0.8 percentage point for 10 years from 2028.

“Due to budget cuts in recent decades, the army is not sufficiently equipped to adequately counter the most likely threats,” it said Wednesday in a statement, adding that an estimated 31 billion francs ($40 billion) is required to “substantially” improve the security situation.

The plan requires support from lawmakers and will also face ...