Rotkäppchen-Mumm, a major sparkling wine producer, has issued warnings regarding the potential negative consequences of a planned increase in the tax on sparkling wine.
In an interview with MDR Aktuell, Silvia Wiesner, the company’s head, urged that this potential policy misstep should be critically reviewed and scrutinized. She argued that the tax hike would not be “socially equitable,” disproportionately disadvantaging “people from the middle of society” rather than those who can afford fine champagne. Furthermore, the company believes the increase would cause “relevant economic damage.”
Wiesner stated that Rotkäppchen-Mumm is currently in intensive discussions with political decision-makers to ensure that this decision is based on a solid and comprehensive foundation of facts. She warned that raising prices for consumers would ultimately lead to lower sales volumes, which would consequently result in lower tax revenue overall.
According to Wiesner, a 20 percent increase in the tax on a bottle of sparkling wine would translate to an additional 20 cents per bottle before Value Added Tax. She pointed out that over 80% of the volume that the average German consumer can afford is sold at a bottle price under €3.50. Given the current economic climate, she emphasized that the German consumer would resist such a rise and that this type of negative social impact cannot be desired.
