European country hikes taxes on guilty pleasures despite outcry

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Por Brittney Donovan — – World RSS Feed

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European country hikes taxes on guilty pleasures despite outcry

Beer and still wine will be left untouched

Brittney Donovan Friday 16 October 2026 15:27 BST

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Germany is raising taxes on cigarettes, sugary drinks and alcohol in a push expected to generate billions of euros for state coffers while promoting public health open image in gallery
Germany is raising taxes on cigarettes, sugary drinks and alcohol in a push expected to generate billions of euros for state coffers while promoting public health ( Getty Images )

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A pack of cigarettes in Germany will cost more than €11 by the end of the decade after lawmakers approved a sharp increase in tobacco taxes on Thursday.

The measure is expected to raise more than €12 billion ($13.5 billion) for the state between 2027 and 2030. It forms part of a wider package of increases on cigarettes, sugary drinks and alcohol that Berlin hopes will generate billions of euros while promoting public health.

A day before the tobacco vote, the cabinet signed off on a sugar tax on soft drinks from July 2027. Drinks containing at least five grams of sugar per 100 millilitres would be taxed at €0.26 per litre.

Products with higher sugar content would face a rate of €0.32 per litre. The finance ministry expects the levy to bring in €690 million in 2027 and €925 million in 2028.

Germany’s changes reflect a broader trend among governments using taxes on tobacco, alcohol and sugary drinks to steer consumer behaviour and raise revenue open image in gallery
Germany’s changes reflect a broader trend among governments using taxes on tobacco, alcohol and sugary drinks to steer consumer behaviour and raise revenue ( Getty Images )

The revenue will help offset cuts to federal health insurance subsidies. The ministry estimates that sugary drink consumption results in annual healthcare costs of about €2.1 billion.

Duties on spirits, sparkling wine and alcopops are also set to rise by 20% from 2027, a move Berlin expects to generate hundreds of millions of euros more. Beer and still wine will be left untouched.

Opposition parties criticised the tobacco tax increase as an additional burden on consumers and warned it could fuel the black market. The measures target products often seen as affordable indulgences rather than necessities.

They reflect a broader trend among governments using taxes on tobacco, alcohol and sugary drinks to steer consumer behaviour and raise revenue.

Britain is tightening its sugar levy by lowering the threshold at which drinks become taxable and expanding its scope.

France has steadily increased tobacco taxes and aims to lift cigarette prices to about €13 a pack by 2027.

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