According to a report, the Chancellery has halted Finance Minister Lars Klingbeil’s (SPD) latest draft legislation concerning the introduction of a sugar tax. The German news outlet “Bild” stated that the proposal was evaluated as neither having sufficient majority support nor being properly coordinated.
Klingbeil had submitted a plan that projected revenues of 1.2 billion euros, significantly higher than the original planned revenue of 450 million euros. Government sources indicated that the implementation of a sugar tax should ideally be founded on the recommendations of the Health Commission. However, the Finance Ministry’s draft deviates from this line and reportedly lacks support within the government.
The ongoing dispute between Chancellor Friedrich Merz (CDU) and Klingbeil centers on the taxation of drinks containing more than five grams of sugar per 100 milliliters. Klingbeil’s proposed draft specifies three distinct tax levels, which were intended to take effect on July 1 of next year: 26 cents per liter for beverages with five grams of sugar or more per 100 ml, 32 cents per liter for those with seven grams or more, and 38 cents per liter for those with ten grams or more.
