The German government plans to increase the tax on distilled alcoholic beverages by 20%. According to the draft by Finance Minister Klingbeil, a 0.7-liter bottle of vodka would cost almost 90 cents more. Beer will remain unchanged, and wine will continue to be exempt. The measure aims to reduce consumption, although it falls short of the 40% increase demanded by public health experts.
How the tax increase affects the development of alternatives 🍃
This tax increase could accelerate investment in technology for producing low-alcohol or non-alcoholic beverages. Companies in the sector are already exploring controlled fermentation processes and vacuum distillation to maintain flavor without the alcohol content. Natural sweeteners and flavorings that mimic complex profiles are also being researched. The goal is to offer products that do not drive up the final price or the consumption of pure alcohol.
A toast with vodka 90 cents more expensive 🥂
Minister Klingbeil believes that making vodka 90 cents more expensive will cause Germans to stop drinking it. Surely many will think: I'd rather buy two bottles of tax-free wine and save myself the dilemma. In the end, the measure may not reduce the amount of alcohol consumed, only redistribute it between the red wine and beer sections. Cheers, may the wallet hold up.