Germany’s Coalition Ends Feud Over Sugar Tax
The two-tier levy on sweetened beverages is meant to bring hundreds of millions into the federal budget and push manufacturers to cut sugar. Critics, including a state premier from Chancellor Friedrich Merz’s own party, call it a new burden on consumers.
Germany's coalition government of CDU/CSU and SPD has resolved their dispute over a tax on sugary drinks. The Federal Finance Ministry has announced that the government will approve the "drafting aid for the governing parliamentary groups," which will impose a levy on beverages containing at least 5 grams of sugar per 100 milliliters.
The tax rate will be 26 cents for drinks with 5 grams of sugar and rise to 32 cents for drinks with 8 grams per 100 milliliters. Manufacturers producing less than one million liters of sweetened drinks per year will be exempt.
Finance Minister Lars Klingbeil (SPD) argued that the tax should not only generate revenue for the federal treasury but also encourage beverage makers to reduce sugar content and make their products healthier. However, the Chancellery put his plans on hold due to lack of cabinet majority. The nine agriculture and consumer protection ministers from CDU/CSU in federal states opposed the idea, criticizing it as state steering that unnecessarily raises food prices.
Boris Rhein (CDU), the state premier of Hesse, joined the critics, stating that the plan sends the wrong signal and could potentially harm jobs in the beverage industry.
Written by urgent.news from The Berlin Spectator's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
