Decline in sparkling wine consumption in Germany affects tax revenue

Germans are drinking less sparkling wine, with 2023 statistics showing a decline in consumption.

The average German over the age of 16 consumed 37 glasses of sparkling wine last year, a significant drop from 46 glasses per person a decade ago.

Germany imposes a fixed sparkling wine tax of €1.02 per 0.75-liter bottle, introduced in the early 20th century to fund the Imperial Navy. This flat rate applies regardless of the champagne’s price, contrasting sharply with the 4 to 6 cents tax per bottle of beer.

The decline in sparkling wine consumption has led to lower tax revenues. In 2023, the sparkling wine tax contributed €361 million to the federal budget, making up a mere 0.04% of total tax revenue.

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