Overview
- The Bundesfinanzministerium has circulated a draft to raise the alcohol duty on spirits, Sekt/Champagne, likörweine and alcopops by 20 percent from 1 January 2027, which the ministry estimates would bring roughly €400 million a year.
- The proposal leaves beer unchanged and retains wine’s tax exemption under current EU rules, a choice that contrasts with a health‑ministry experts’ commission that urged much larger increases of more than 40 percent for 2027 and a possible doubling by 2029.
- A parallel draft to reshape the tobacco duty would sharply raise the tax on waterpipe (shisha) tobacco in steps to about €188.46 per kilogram by 2030, a shift the industry warns could double retail prices and fuel illegal trade.
- Medical associations and public‑health figures back higher levies to cut consumption and health costs, while trade groups and the shisha sector cite past policy moves that boosted the black market and say customs enforcement must be strengthened.
- The measures remain government draft proposals subject to internal clearance and formal cabinet and Bundestag approval, with public debate now focused on revenue needs, health aims and the practical risk of illicit markets.