Germany advances 2027 sugar tax and plans higher spirits levy

The German federal government intends to introduce a levy on sugar‑sweetened beverages starting 1 January 2027, one year earlier than originally planned. The draft calls for a tiered rate – 26 cents per litre for drinks containing 5–8 g of sugar per 100 ml and 32 cents per litre above that level – and projects revenue of €650 million in the first year, falling to €450 million in 2028. Finance Minister Lars Klingbeil said the exact start date is still being finalised. Industry groups oppose the fast‑track schedule, with WAFG chief Detlef Groß labeling the move “modern raubrittertum” and warning that manufacturers lack sufficient time to reformulate products.

In parallel, the cabinet approved a 20 % increase in excise duties on spirits, sparkling wine and alcopops, also to take effect from 1 January 2027. The higher rate would raise the tax on pure alcohol from €13.03 to €15.64 per litre, generating roughly €400 million annually. Beer and ordinary wine remain exempt. The measures are presented as ways to shore up the federal budget and to support public‑health goals by reducing consumption of sugary drinks and alcohol.

Both proposals are part of a broader health‑finance strategy aimed at expanding the statutory health‑insurance fund while securing additional fiscal space for the government.