Trade and the people want to know nothing Value added tax is on the brink of collapse
The retail trade association is against further VAT increases. At the same time, a new survey shows that the population also clearly rejects higher levies for the army or the 13th AHV.
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- The Swiss Retail Federation has announced its opposition to further VAT increases.
- According to a Sotomo survey, 76 percent reject higher VAT for the army, 66 percent also for the 13th AHV.
- Retailers warn of additional price pressure, loss of margins and growing competition from Asia.
Opposition to an increase in VAT is forming on a broad front. While the federal government is discussing additional billions for the army and pensions, the retail trade is clearly opposed. "We say no," explains Dagmar Jenni, Managing Director of the Swiss Retail Federation, to the CH Media newspapers. Politicians are too quick to make use of VAT when it comes to financing issues and are falling into a "self-service mentality".
The sector is already feeling the pressure. In an association survey, retailers named the intensified price war as the biggest problem. This is followed by pressure on margins and weak consumer sentiment. Higher VAT would further exacerbate this situation. "Every VAT increase makes consumption more expensive," warns Jenni.
Additional competition comes from abroad. 68% of the companies surveyed see platforms such as Temu or Shein as having a strong influence on the Swiss market. Around half expect a drop in sales, while a third anticipate declines of up to three percent.
However, it is not just the industry that shows little enthusiasm for new tax percentages, but also the population. As a representative survey conducted by the Sotomo research institute on behalf of Blick shows, 76% of respondents reject an increase in VAT to finance additional military spending. 66 percent are also against an increase to finance the 13th AHV.
Political geographer Michael Hermann von Sotomo explains to Blick that higher taxes are currently having a particularly difficult time. The pressure on households due to rising rents and health insurance premiums has increased sensitivity.
According to the survey, it is also striking that there is no clear majority in favor of higher taxes, even in the middle-class camps. In the case of the army, 56% consider a budget increase to 1% of gross domestic product by 2032 to be appropriate or too low - but there is still hardly any support for financing via VAT.
For the retail trade, the general political situation is clear: more burdens for consumers means less leeway in sales. Instead, Jenni is calling for regulatory relief, for example for product declarations that go beyond EU standards. "Anyone who wants to strengthen the domestic economy must not place additional burdens on the retail trade."
