Rhineland-Palatinate government opposes sparkling wine tax hike

The Rhineland-Palatinate state government is opposing a proposed increase in the sparkling wine tax (Sektsteuer). Rhineland-Palatinate is Germany's largest wine-growing region, and officials argue that the tax hike would further damage an already struggling wine industry.

Minister President Gordon Schnieder stated that he does not expect the increase to occur, noting that such a measure was never agreed upon and that the industry is currently suffering significantly. He pointed out that the tax, originally introduced in 1902 to fund the navy, is no longer necessary for its original purpose.

Christine Schneider, the minister responsible for viticulture, warned that the potential revenue gains—estimated in the tens of millions—would be negligible compared to a budget exceeding 550 billion euros, while the economic damage to the sector would be substantial. The Federal Association of Wine, Sparkling Wine and Spirits also opposes the move, calculating that a 20 percent tax increase would raise the cost of a 0.75-liter bottle from 1.02 euros to approximately 1.22 euros.