Bundesregierung: Koalition legt Streit über Zuckersteuer bei

The coalition government has resolved its dispute over the introduction of a tax on sweetened beverages. According to a statement from the Federal Finance Ministry, the government has agreed on a formulation assistance for the government factions' implementation of the agreed-upon sugar drink tax. The proposal is expected to be decided by the Cabinet on Wednesday, as reported by the Redaktionenetzwerk Deutschland (RND).

The compromise, according to RND, includes a two-stage tax and exemptions for smaller producers. The tax is set to start on July 1, 2027, with a rate of 26 cents per 100 milliliters of sweetened beverages containing at least 5 grams of sugar, and 32 cents per 100 milliliters for 8 grams of sugar per 100 milliliters. The aim of the sugar tax is not only to generate revenue for the federal budget but also to encourage beverage manufacturers to reduce sugar content and make their products healthier.

However, the Chancellor's Office initially halted its plans at the beginning of the month, claiming its proposal deviated from the proposal of the Health Finance Commission and was not majority-supported in the government. With this new agreement, the government expects the tax to generate around 690 million euros for the federal government in 2027 and 925 million euros in 2028.

Smaller producers, those manufacturing less than one million liters of sweetened beverages per year, would be exempt from the tax. The sugar tax has faced significant opposition, most recently from the nine agriculture and consumer protection ministers of the Union from the federal states, who criticized it in a letter to Federal Chancellor Friedrich Merz (CDU).

They argue that a sugar tax involves state regulation and unnecessarily burdens the purchase of certain foods.