PLR launches campaign against Swiss VAT increase

The FDP/PLR party has launched a campaign to oppose a proposed 0.4 percentage point increase in the standard VAT rate, which is scheduled for a public vote on November 29. The increase, which would raise the rate to 8.5%, was approved by Parliament to help finance the 13th AVS (old-age and survivors' insurance) pension.

Party leaders argue that the tax hike will disproportionately affect households already struggling with high rents and health insurance premiums, as well as SMEs, retail, and the catering industry. Citing a study by BAK Economics, the party estimates a potential loss of 3.6 billion francs in economic growth over ten years.

While the PLR supports the payment of the 13th AVS pension as decided by the people in 2024, they advocate for structural reforms and stricter state spending priorities rather than increasing the tax burden on the population. The Young Liberals (JLR) also joined the campaign, criticizing the measure for its long-term impact on younger generations.