Cigarette and alcohol prices increased in Germany. Berlin will raise billions

The day before the vote in parliament, the federal cabinet adopted the sugar tax plan for soft drink products.

According to the regulation, which is planned to come into force in July 2027, a tax of 0.26 euros per liter will be collected from drinks containing at least five grams of sugar per 100 milliliters.

For products with higher sugar content, the tax amount per liter will reach 0.32 euros.

The Ministry of Finance expects a revenue of 690 million euros from the sugar tax in 2027 and 925 million euros in 2028.

The funds will be used to offset cuts in federal health insurance subsidies.

According to the ministry's calculations, sugary drink consumption causes health expenditures of approximately 2.1 billion euros in the country every year.

The Berlin administration plans to increase taxes on spirits, sparkling wine and flavored alcoholic beverages (alcopop) by 20 percent from 2027.

While hundreds of millions of euros of additional revenue were targeted with this step, beer and classic table wine were excluded from the regulation.

Among the items whose taxes will be increased is one of Germany's oldest tax practices.

First introduced in 1902 to finance the imperial navy, the sparkling wine tax (Sektsteuer) has survived the collapse of the empire, two world wars and successive governments to this day.

Steps to direct consumption habits throughout Europe through taxes are continuing in other countries as well.

While the UK has lowered the sugar tax threshold on soft drinks and expanded its scope, France aims to gradually increase tobacco taxes, increasing the price of a pack of cigarettes to around 13 euros by 2027.