Call for VAT hike

A parliamentarian is calling for a rise in VAT.

The country's finances are under strain. Demands on the army and the 13th pension payment means the government has to come with billions of extra cash.

State Councillor, a Liberal Party member for Sankt Gallen, Benedikt Würth, is the first to go public and says tax must rise. He suggests a 1% hike in VAT as a temporary measure for the next 5 years.

Half a percent will be used for the pensions and the other half for the army. 

Würth says he’s getting support from many other members from several different parties. He says he believes his idea has enough support for a realistic chance. 

If successful it means VAT will rise from the current 8.1% to 9.1%.

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