Germany plans 20% alcohol tax rise, ignoring expert panel's call for 40% increase

Klingbeil's tax proposal

According to a draft law obtained by Redaktionsnetzwerk Deutschland, the tax on pure alcohol would rise from €13.03 to €15.64 per litre. A 0.7-litre bottle of 40% spirit (vodka, whisky, rum) would cost 87 cents more including VAT. Sparkling wine, champagne, fortified wines and alcopops are also set for the 20% increase.

The tax increase serves the consolidation of the federal budget for 2027 and the financial plan until 2030.

Expert commission's higher recommendation

Health Minister Nina Warken's expert commission had called for a much steeper rise - more than 40% in 2027, and doubling the tax by 2029. Klingbeil's draft omits those levels, sticking to a 20% hike.

Exclusions and budget impact

The draft exempts beer and wine. Beer tax remains unchanged, while wine stays tax-free. Additional revenue from the measure is estimated at around €400 million per year, earmarked for budget consolidation.

Broader health reform context

The same health reform commission has also proposed a higher sugar tax. The broader reform aims to avert a projected deficit of €15.3 billion in the statutory health insurance system next year.