German Bundestag

Stories

Germany raises taxes on cigarettes, sugary drinks and alcohol

Approved tobacco tax increase October 15, 2026; Bundesrat cleared it October 16

The higher tobacco duty is on the statute book and, as published, took effect on October 21, 2026, more than two months before the government meant it to start. The Finance Ministry calls the date a drafting error and says the increase belongs on January 1, 2027. A formal correction of the Federal Law Gazette is under way but not yet complete, and customs has been told not to apply the higher rate for now.

Updated Oct 27

Germany doubles down on Arrow 3: a $3.1B add-on to build Europe’s “top layer” missile shield

New Capabilities

As of May 2026: Approved the Arrow 3 expansion and broader defense contract packages

Germany just decided it doesn't want a "nice-to-have" missile shield. It wants a real one. On December 17, the Bundestag approved a major expansion of Germany's Arrow 3 procurement from Israel—roughly $3.1 billion more.

Updated May 15