- German lawmakers have approved a significant tobacco tax increase that will see the cost of a pack of cigarettes rise to over €11 by the end of the decade, generating more than €12 billion for the state between 2027 and 2030.
- A new sugar tax on soft drinks will take effect from July 2027, taxing drinks with at least five grams of sugar per 100 millilitres to help offset cuts to federal health insurance subsidies and address €2.1 billion in annual healthcare costs.
- Duties on spirits, sparkling wine, and alcopops are set to increase by 20 per cent from 2027 to raise hundreds of millions of euros, though beer and still wine will remain untouched.
- Opposition parties have strongly criticised the tobacco tax hike, warning that it imposes an additional burden on consumers and risks fuelling the growth of the black market.
- The legislation reflects a broader trend across Europe to raise revenue and alter consumer behaviour, following similar tax tightening measures on tobacco and sugar in France and the UK.
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