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Klingbeil Plans 20 Percent Higher Alcohol Tax

Federal Finance Minister Lars Klingbeil (SPD) wants to raise the alcohol tax by 20 percent. This is according to a draft law obtained by the Redaktionsnetzwerk Deutschland (RND).

Klingbeil Plans 20 Percent Higher Alcohol Tax
Photo: cdn.prod.www.spiegel.de

The draft law from the Finance Ministry proposes raising the tax on pure alcohol from €13.03 to €15.64 per liter. A 0.7-liter bottle of spirits with 40 percent alcohol by volume would become 87 cents more expensive including VAT, according to RND.

The tax on sparkling wine, champagne, fortified wines and alcopops would also rise by 20 percent. Klingbeil does not plan to increase the beer tax, and wine remains tax-free. The draft estimates additional annual revenue of around €400 million, which would be used to consolidate the federal budget from 2027 onward.

An expert commission appointed by Nina Warken (CDU) had recommended a significantly larger increase – more than 40 percent for 2027 and even a doubling by 2029. The draft law also provides for cuts in statutory health insurance funds to prevent a further rise in contributions. Without reform, the funds face a deficit of €15.3 billion next year.

Source: www.spiegel.de