Federal Finance Minister Lars Klingbeil (SPD) plans to implement an increase in the alcohol tax that is significantly less ambitious than what was recommended by the Ministry of Health’s expert commission. According to a draft from the Finance Ministry, noted by Redaktionsnetzwerk Deutschland, the tax on spirits is set to rise by 20 percent next year.
This 20 percent increase applies to spirits such as vodka, whisky, or rum. For example, a one-liter bottle of 40 percent vodka would become nearly one euro more expensive in retail. Applying the tax increase means the per-liter tax on pure alcohol will rise from 13.03 euros to 15.64 euros. For a standard 0.7-liter bottle of a spirit, the total tax burden, including VAT, will increase by 87 cents. The plan also includes raising the tax by 20 percent on sparkling wine (Sekt), champagne, liqueur wines with alcohol content, and “alkopops.”
Crucially, Klingbeil intends not to increase the tax on beer, and wine will remain tax-free.
The proposed tax hike aims to boost state revenue by approximately 400 million euros annually, with the government stating that the increase is necessary for the “consolidation of the federal budget 2027 and the financial plan until 2030.”
The proposed 20 percent rise contrasts sharply with the recommendations made by Federal Health Minister Nina Warken’s expert commission. That body had suggested an increase exceeding 40 percent by 2027, with its proposal even forecasting a doubling of the tax by 2029.
