Switzerland’s government plans to raise value-added tax (VAT) temporarily to finance a substantial increase in military and security spending. The least harmful optionThe government has opted for a temporary VAT increase, arguing that it would be less damaging to the economy and society than alternative measures. Because a VAT increase requires a constitutional amendment, voters will have the final say, probably in the summer of 2027. If adopted, it would be the largest VAT increase since 1999. In 2011 the standard VAT rate was increased by 0.4 percentage points to shore up disability insurance.