Switzerland to Bolster Defence with $40 Billion Boost, Sales Tax Hike Planned

Switzerland is set to enhance its defence spending by 31 billion Swiss francs from 2028, funded by a decade-long sales tax increase. Prompted by geopolitical tensions, this initiative aims to meet critical military needs, with additional reforms for intelligence service capabilities in tackling modern security threats.

Switzerland is gearing up to significantly amplify its defence budget, planning an infusion of 31 billion Swiss francs over the course of a decade starting in 2028. This move comes amid rising geopolitical tensions and is set to be financed by an incremental sales tax hike of 0.8 percentage points.

The Swiss Federal Council highlights the increasingly volatile global landscape, emphasizing a pressing need to strengthen the nation's defence capabilities, which currently are not on track to reach 1% of GDP until 2032. Defence Minister Martin Pfister mentioned the priority to address 'critical gaps' including countering modern threats such as mini-drones and bolstering cyber protection.

In response to escalating risks like espionage, cyberattacks, and international conflicts, Switzerland also plans to expand the Federal Intelligence Service's mandate for greater data access. This extensive overhaul aims to facilitate better anticipation and mitigation of complex security threats, positioning Switzerland for proactive global engagement.

(With inputs from agencies.)