Particle.news
Download on the App Store

Germany to Raise Spirits, Sekt and Alcopop Taxes by 20% From January 2027

Finance officials say the increase is meant to shore up 2027 revenues while reducing harmful drinking by making high‑alcohol products pricier.

Overview

  • The federal cabinet advanced a draft law that would raise general alcohol, schaumwein and alcopop tax rates by 20 percent, with the change set to take effect on 1 January 2027.
  • The Finance Ministry projects roughly €455 million in extra annual revenue from the spirits measure, a figure officials say will help plug the 2027 budget gap.
  • Industry groups including the spirits trade association dispute the revenue estimate, saying higher prices will cut sales, trigger substitution to other drinks and reduce tax receipts.
  • The tax rise targets spirits, champagne/sekt, liqueur wines and alcopops while leaving the beer tax and wine (which faces only VAT) unchanged, producing modest per‑bottle retail increases in government calculations.
  • The alcohol change is part of a wider package that also proposes phased tobacco hikes, shifting the EU plastic levy onto companies and a proposed sugar tax whose design and start date remain unresolved as the bill enters parliamentary review.