Switzerland Should Boost VAT Rate and Broaden Base, OECD Says

Switzerland should increase its value-added tax rate and broaden the tax’s base to help raise revenues, the OECD said Thursday.

Switzerland has spending needs related to defense, an aging workforce, and climate change. Increasing its standard VAT rate of 8.1% and broadening the base could boost revenues to address those needs, the Organization for Economic Cooperation and Development said in its 2024 economic survey of the country.

• Switzerland also has room to increase revenues from real estate taxation, notably the recurrent tax on immovable property, which is low by international standards, the OECD said. Switzerland also should lower disincentives ...