Swiss parliament to vote on continuation of hotel VAT discount

On Monday the National Council will cast votes on whether to keep the VAT discount for the hotel industry, a relief that was first granted in the mid-1990s as a temporary crisis measure. Since then the subsidy has been prolonged six times, most recently through 2027, even though Swiss tourism is experiencing record occupancy and growth. Critics, including the president of the Green Liberal faction, contend that the aid is no longer justified and that the normal VAT rate should apply from 2028 onward.

While the Council of States recently approved the discount, the lower house remains divided, with some SVP parliamentarians reversing earlier opposition, which could tip the balance. The debate also highlights concerns that the rebate primarily benefits large hotel chains, leaving smaller operators with limited gains.