Overview
- The cabinet has approved a Finance Ministry draft to raise excise duties by 20 percent on spirits and several sparkling and sweet drinks so the change could take effect on January 1, 2027.
- The proposal would lift the Sekt tax from €1.02 to €1.22 per 750 ml bottle and the Finance Minister expects roughly €450–455 million in additional annual revenue compared with current Sekt receipts of about €325 million.
- Producers and trade groups warned the rise will squeeze margins for mass‑market sparkling wines, slow investments, threaten regional jobs and could push consumers to untaxed drinks, which industry models say might cut or reverse revenue gains after 2028.
- Union lawmakers led by Johannes Steiniger have publicly vowed to fight an increase to the Sekt tax in the parliamentary process, creating a realistic chance the proposal will be amended, delayed or blocked.
- A Health Ministry commission recommended higher alcohol taxes on health grounds and estimated roughly 1,000 cancer cases could be prevented each year, making the debate one of fiscal trade‑offs, health aims and regional economic impact.