Everything about the sparkling wine tax explained
Kaiser Wilhelm II introduced the sparkling wine tax to finance the equipment of his imperial war fleet. The fleet was sunk, the tax remained. Why, after more than 120 years, do we still pay the champagne tax for every cork pop?
What is meant by a sparkling wine tax?
According to current tax law, the sparkling wine tax, also known as sparkling wine tax, is considered a consumption tax. When purchasing a bottle of sparkling wine, the sparkling wine tax always applies.
The state demands this from the producer as soon as the finished sparkling wine leaves the warehouse.
The sparkling wine tax is in turn passed on to the end consumer.
How much is the sparkling wine tax and who has to pay it?
The sparkling wine tax is per bottle of sparkling wine, champagne or crémant with a content of 0.75 liters 1.02 euros net, regardless of whether the bottle price is 3 euros or 200 euros. This corresponds to 1.22 euros gross that the consumer pays when shopping.
The federal government is entitled to the revenue from the sparkling wine tax. In 2022, the federal government collected more than 350 million euros in sparkling wine tax. Compared to some other types of taxes, the sparkling wine tax represents a very small share (less than 1%) of federal income.
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Why is there a sparkling wine tax at all?
The sparkling wine tax has a long history in Germany. It was introduced in 1902. The project of creating a navy that would make the Germans a world power was very expensive. At that time, military spending continued to rise.
In order to finance the war fleet, creativity was required. The Reichstag under Kaiser Wilhelm II imposed a tax on sparkling wine financing introduced into the imperial fleet.
Somehow the tax has been preserved and still ends up in the general tax pot today.
Why isn't wine taxed?
Since the minimum excise tax rate for wine has been set at 0 euros, there is no taxation for wine, but only a tax supervisory function.
Is producing sparkling wine still lucrative for the manufacturer?
Grape harvest, bottle, cork, label etc. are just a few cost factors that a producer must consider when producing sparkling wine.
If you now ask yourself the question, if the bottle of sparkling wine is also on offer in the discount supermarket for approx. €3.00 is what profit is left for the manufacturer after deducting the sparkling wine tax and also the VAT of 19%?
Ultimately, compromises in terms of grape quality have to be accepted if you want to keep the drinks budget within limits at the next party.
Are there other such sources of government revenue?
The sense or nonsense of the sparkling wine tax that still exists today can be debated. However, in addition to the sparkling wine tax, there are other tax revenues from the state that may seem strange at first glance.
Non-alcoholic drinks such as coffee are also taxed. The tax paid to the state is a whopping 2.19 euros per kilogram of roasted coffee.
The cinema tax has been around since the 1930s. The cinema operator pays a fee to the community for each film screening.
The hunting and fishing tax is also quite interesting. Here the tax is not calculated based on each animal killed, but rather based on the rental payments for a hunting area or the number of fishing districts.
There is also the entertainment tax, the lottery and sports betting tax, the liquor license tax and, among other things. a. the packaging tax.
And even if the tax makes the sparkling wine a little more expensive, as long as we still like the sparkling wine, the corks should continue to pop.
