German Finance Minister Lars Klingbeil proposes 20% rise in alcohol taxes

Finance Minister Lars Klingbeil (SPD) unveiled a draft law to raise the German alcohol excise tax on spirits, sparkling wine, fortified wines and alkopops by 20 % from 2027. The rate would rise from €13.03 to €15.64 per litre of pure alcohol, adding about €0.87 to a standard 0.7‑litre bottle of vodka, whisky or rum. Beer and wine would remain exempt. The government estimates the change will generate roughly €400‑€455 million in annual revenue and is framed as a measure to consolidate the federal budget for 2027‑2030 while modestly addressing health concerns. An expert commission appointed by Health Minister Nina Warken had recommended a tax hike of more than 40 % and even a doubling by 2029, but Klingbeil’s proposal is considerably less aggressive. In parallel, the head of the German physicians’ association, Andreas Gassen, has called for far larger price increases on tobacco and alcohol products – suggesting a cigarette price of €20 to deter youth – but the government's own tobacco‑tax plan remains modest, targeting an average price of about €11.40 per pack by 2030. Both debates centre on reducing consumption among young people and offsetting health‑system costs.