Reform: Kanzleramt stoppt vorerst Zuckersteuer

Berlin - The Chancellor's Office has temporarily halted the draft law proposed by Finance Minister and Vice Chancellor Lars Klingbeil (SPD) for the introduction of a sugar tax, according to reports from government circles. Klingbeil had submitted his plans to the ministries for a vote on Wednesday. Government sources now say that his draft deviates from the proposal of the Health Commission and is no longer majority-viable within the government in its current form.

The Finance Ministry told a Handelsblatt inquiry that the votes were ongoing. The specifics were not disclosed. Klingbeil aims not only to generate revenue for the federal budget with the sugar tax, but also to incentivize beverage manufacturers to reduce sugar content and make their products healthier. According to the draft, it would apply to all beverages with a sugar content of at least five grams per 100 milliliters.

Unlike previously considered, zero-calorie drinks sweetened with substitutes and pure fruit and vegetable juices, non-alcoholic beer and non-alcoholic wine would be exempt. The tax rate should depend on the sugar content and range from 26 to 38 cents per liter. The Finance Ministry anticipated annual revenues of around one billion euros, with 945 million euros expected in the coming year, followed by 1.155 billion euros in the second year, rising to 1.18 billion by 2031.

However, opposition was primarily in the Union faction and from several federal states. Hessens Ministerpräsident Boris Rhein (CDU) called it a "burden for medium-sized beverage manufacturers." Critics also emerged immediately from the business community.