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The Federal Council, led by Finance Minister Karin Keller-Sutter, wants to seize the wallets of tourists while shopping. Anyone who buys meat and shower gel in Konstanz (D) or Weil am Rhein (Germany) will have to pay VAT from 150 francs in the future. So far the limit is 300 francs.
The debate sheds light on federal customs enforcement: Supporters hope there won’t be traffic congestion or complicated checks even with a lower exemption limit. Finally, you can use the app to enter your purchases and pay directly. However, according to CH Media newspaper, those who do this may be paying too much. The app only calculates the higher VAT rate of 8.1 percent, even for food that is actually taxed at 2.6 percent. This is expensive: he who imports food for 350 francs pays 28 francs instead of 9.
“A shame for Switzerland”
The reactions on the App Store are also corresponding: “Complete rip-off” and even “a disgrace for Switzerland” are spoken of. It has only 2.7 out of 5 possible stars on the App Store, with many users giving it only one star.
The Federal Customs Service said in a statement to CH Media newspapers that they want to make the calculation and payment process as fast and fluid as possible when it is implemented in 2018. No one has to use the app; Anyone who gets out of the car and declares goods at customs will also receive lower VAT. During the initial installation, attention is drawn to the higher VAT rate.
Federal government wants to change practice
However, the federal government wants to change the practice: “An expansion of the practice is planned to ensure that customs clearance is also possible at a reduced VAT rate,” a spokesperson for the Federal Office tells CH Media. However, this will only be possible at the beginning of 2027.
Starting from January 2025, the lower value exemption limit will be introduced. Meanwhile, it is not yet clear whether it will actually remain at 150 francs: even the retailers’ association is calling for a reduction to 50 francs, while the SP and consumer advocates want to stay at 300 francs. The Federal Council is expected to make a decision soon.
Source :Blick

I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.