In the News

Single VAT Rate Planned

The government has come out in favour of a standard 6.1 per cent Value Added Tax (VAT) and the abolition of most special rates. Finance Minister Hans-Rudolf Merz said the proposal was aimed at introducing a more efficient and transparent system while reducing the administrative burden for companies.

The plan, which still needs approval by parliament and voters, is expected to make household products, public transport, cars, fuel and electronic equipment cheaper. The proposed rate of 6.1 per cent, the lowest in Europe, has already been criticised by all the main political parties.