The Swiss government proposed increasing sales tax by 0.7 percentage points from 2026 to fund pension payments. At the same time, it was decided to reduce duty-free import limits for overseas purchases. The government said in a statement on Wednesday that the general sales tax will be raised from 8.1% to 8.8%; the lower tax rate applicable to the hotel industry will be raised from 3.8% to 4.2%, and the lower tax rate for everyday necessities will be raised from 2.6% to 2.8%. These changes require parliamentary approval and adoption of a referendum. The tax increase plan will take effect in January 2026. The government said in another statement that the daily duty-free limit for food and other goods imported from outside Switzerland will be reduced from CHF 300 to CHF 150 per person. The change does not require parliamentary approval and will take effect on January 1, 2025.

The Swiss government proposed increasing sales tax by 0.7 percentage points from 2026 to fund pension payments. At the same time, it was decided to reduce duty-free import limits for overseas purchases. The government said in a statement on Wednesday that the general sales tax will be raised from 8.1% to 8.8%; the lower tax rate applicable to the hotel industry will be raised from 3.8% to 4.2%, and the lower tax rate for everyday necessities will be raised from 2.6% to 2.8%. These changes require parliamentary approval and adoption of a referendum. The tax increase plan will take effect in January 2026. The government said in another statement that the daily duty-free limit for food and other goods imported from outside Switzerland will be reduced from CHF 300 to CHF 150 per person. The change does not require parliamentary approval and will take effect on January 1, 2025.