Germany plans to raise taxes on spirits in 2027

Germany plans to raise taxes on spirits, sparkling wine and alcopops starting Jan. 1, 2027, in a move the government says is tied both to budget needs and public health goals.

A spokesperson for the Federal Finance Ministry said the measure had already been approved in principle by the cabinet in April as part of efforts to close gaps in the federal budget. The spokesperson added that the increase is also being pursued for health policy reasons.

According to details reported in Germany, the tax on spirits would rise by 20%, from 13.03 euros to 15.64 euros per liter of pure alcohol. Based on that rate, a 0.7-liter bottle of vodka at 40% alcohol would cost nearly 90 cents more.

The Finance Ministry expects the higher alcohol tax to bring in about 400 million euros a year in additional revenue. Beer would not be affected under the plan, and wine would continue to face no separate special tax.

The proposal also covers Sekt, Germany’s sparkling wine category, and alcopops, extending the impact beyond distilled spirits alone. That matters for beverage producers, importers, distributors and hospitality businesses that sell these products, since higher excise taxes can feed directly into shelf prices and restaurant margins once the measure takes effect. For sparkling wine in particular, the change could affect both domestic producers and foreign brands competing in the German market.

The tax debate has also been shaped by recommendations from a commission appointed by the Health Ministry. The panel proposed raising taxes on spirits to help stabilize Germany’s statutory health insurance system through added revenue. It recommended three consecutive increases in 2027, 2028 and 2029.

The commission argued that higher taxes would likely reduce consumption. It said that effect could help prevent about 1,000 cancer cases each year, along with numerous accidents.

For now, the government’s announced step is the increase scheduled for 2027. The decision leaves beer outside the measure and preserves Germany’s long-standing position of not applying a special tax to wine, creating a different tax treatment across major beverage categories at a time when Berlin is trying to balance fiscal pressure with health policy aims.