VAT Increase to Be Lower Than Expected & Heatwave
The Federal Council is reducing the planned increase in value-added tax (VAT), which eases the financial burden on households. Meanwhile, a heat dome over Western Europe is leading to extreme temperatures. Internationally, the news is dominated by attacks on infrastructure in Ukraine, tensions in the Persian Gulf, and a severe earthquake in Venezuela.
The additional burden from value-added tax (VAT)—a tax on almost all consumer goods—will be lower than originally announced. The Federal Council now plans an increase of 0.5 instead of 0.8 percentage points. This money is intended to finance the 13th AHV pension (Switzerland's state old-age insurance).
In addition to costs, temperatures are also rising significantly. A heat dome over Western Europe is already causing record values in June, particularly in neighboring France. As the hot air is expected to persist for a longer period, health risks due to the extreme heat are to be expected in everyday life.
The security situation in Eastern Europe remains tense as Ukraine and Russia increasingly attack each other's logistics. While Ukraine disrupts Russian supplies on the Crimean Peninsula, Russia is specifically targeting the Ukrainian rail network. The railway is a vital artery there, transporting around two million people every month.
At the same time, global trade routes are coming under pressure. In Iran, a freighter in the Strait of Hormuz was attacked with drones. Since this bottleneck is crucial for global trade and oil supplies, such blockades could have an impact on international supply chains and prices.
In South America, a severe earthquake has led to a humanitarian disaster. A state of emergency has been declared in Venezuela—a legal status that gives the government special powers to manage the crisis. So far, 188 deaths and over 1,500 injuries have been reported.
Further news, such as criticism of the police following an e-scooter chase in Liechtenstein or the new multi-million contract for ice hockey star Nico Hischier, can be found in the news section of the app.