FDP campaigns against VAT increase for AHV pension

The FDP has launched a campaign against a proposed value-added tax (VAT) increase intended to fund the 13th AHV pension in Switzerland. The party is calling for voters to reject the measure in November, labeling it a ‘VAT scam’.

To support its position, the FDP commissioned a study by the economic research institute BAK Economics. The study suggests that a 0.4 percentage point increase in VAT could result in a loss of approximately 3.6 billion Swiss francs in economic growth over a ten-year period.

The FDP argues that the increase would disproportionately affect the retail sector and could drive consumers to shop abroad due to higher domestic prices. Instead of tax hikes, the party expresses a preference for reforms such as raising the retirement age.