Beverage manufacturers anticipate price increases following the planned sugar tax. Detlef Groß, CEO of the association for non-alcoholic beverage companies (wafg), told the Spiegel that consumer prices are certain to rise. Given the amount of the proposed tax, companies cannot bear the burden indefinitely. Furthermore, consumption taxes are intended to be passed along to the consumer, and ultimately, competition will determine how this is implemented on an individual basis.
The beverage industry lobby has also warned about further price increases stemming from administrative and transition costs. According to Groß, these additional costs will largely depend on the final procedure for tax collection. He added that when the German government provided guidance for parliamentary consultation, it proposed a highly complex and bureaucratic process involving so-called tax storage facilities.
Internationally, the World Health Organization (WHO) recommends implementing a tax on sweetened beverages. The introduction of such a tax could potentially lower risks related to weight gain, obesity, and diabetes. The WHO notes that any such tax must account both for the health burdens caused by sugar-sweetened beverage consumption and the specific cultural conditions of a given country.
