Retailers in neighbouring countries are alarmed by discussions in parliament in Bern which may slash the tax-free allowance shoppers have on bringing goods back into the country.
It’s estimated Swiss shoppers spend CHF 10bn a year in border areas.
The current tax allowance is CHF 300 per person per day. Parliament is discussing cutting that and making it harder to claim back VAT.
The idea is to help retailers based near the border in Switzerland. Many feel they are facing unfair competition.
But the government is sceptical of the idea. The finance minister Ueli Maurer says more restrictive laws would be difficult to police and will simply lead to more smuggling.