Germany raises taxes on tobacco, sugary drinks and alcohol

Expected from the tobacco tax, 2027 to 2030

12 billion euros

Lawmakers approved a sharp rise in tobacco taxes on Thursday, expected to raise more than 12 billion euros between 2027 and 2030 and push the average pack of cigarettes above 11 euros.

Under a plan the cabinet approved Wednesday, drinks with at least five grams of sugar per 100 millilitres would be taxed at 0.26 euros a litre from July 2027, rising to 0.32 euros for the sweetest.

Duties on spirits, sparkling wine and alcopops rise by 20 per cent from 2027, while beer and still wine are left untouched.

Why it matters

The revenue will help offset cuts to federal health insurance subsidies. Opposition parties say the tobacco increase burdens consumers and could fuel the black market.