Swiss Post to absorb part of VAT costs

Following the Federal Council’s decision in September to open up the postal market, letters weighing more than 100 grams will be subject to VAT from 1 April 2006. This will mean an extra VAT bill of around CHF 30 million for Swiss Post, part of which it will cover itself. In addition, the price of certain products will be reduced. Only B4 letters weighing between 101 and 500 grams will be slightly more expensive; for letters with proof of delivery there is now a single, efficient and economic option: registered mail. For many corporate customers, these slight adjustments will mean a drop in prices as they can claim back the VAT from the tax authorities. The price of letters weighing less than 100 grams remains unchanged. The price watchdog has approved the new prices.