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Germany Proposes 20% Excise Hike on Spirits to Start January 2027

Officials say the measure will raise about €455 million a year to fund government budgets and support public‑health aims.

Overview

  • The Bundeskabinett approved a draft law in early July that would raise excise taxes by 20% on spirits and some drinks such as sparkling wine, liqueur wines and alcopops, taking effect on 1 January 2027.
  • A Forsa poll of 1,022 people conducted 14–16 July for the KKH found roughly two‑thirds of respondents consider the tax increase sensible but about two‑thirds also doubt it will cut consumption.
  • Many survey participants expect substitution toward beer and wine, which are exempt, or more cross‑border shopping to cheaper EU markets, raising questions about the policy’s likely impact on drinking levels.
  • An expert commission convened by the Federal Ministry of Health recommended three consecutive yearly increases from 2027 through 2029 to reduce alcohol‑related illness, while the Finance Ministry emphasizes the projected revenue gains.
  • Public demand for complementary steps is strong, with 74% backing more education and prevention and two‑thirds supporting a full alcohol ban for under‑18s, and lawmakers must now pass the cabinet draft through parliament before the increase becomes law.