The black-red coalition has finally agreed on the introduction of a sugar tax. According to reporting by the “Redaktionsnetzwerk Deutschland” (Wednesday edition), the measure includes provisions for a two-tiered tax structure, as well as exceptions for smaller manufacturers.
Under the plan, a tax rate of 26 cents per liter is slated to be applied to sugar-sweetened beverages containing at least 5 grams of sugar per 100 milliliters, effective July 1, 2027. Beverages with a sugar content of 8 grams per 100 milliliters will face a higher rate of 32 cents. This agreement aligns with the proposal put forward by the Government Health Commission. Previously, Federal Finance Minister Lars Klingbeil (SPD) had advocated for a three-tiered rate with a higher tax amount, but that was blocked by the Chancellor’s Office.
Manufacturers producing fewer than one million liters of sweetened beverages annually will be exempt from this tax. This provision is intended to prevent undue bureaucracy and administrative burden on small, independent producers, according to the draft legislation. The tax is projected to generate 690 million euros for the federal government in 2027. For 2028, the expected revenue is 925 million euros, with subsequent years projected to yield approximately 880 million euros each.
