Swiss Parliament Approves Increased VAT Rates to Fund Additional Pension Payment

The Swiss parliament has announced the approval of an increase in VAT rates by both the Council of States (upper house) and the National Council (lower house) on 19 June 2026 to finance the additional "13th month" pension payment under the old-age and survivors' insurance program. An increase in employee contributions to finance the additional payment was also considered, but was rejected. As approved by parliament, the standard VAT rate will increase from 8.1% to 8.5% and the VAT rate for t…