According to calculations conducted by various food industry associations, the proposed sugar tax on sweetened beverages by the federal government is poised to generate nearly ten times the revenue projected in the initial plans.
The German Brewers’ Association, the Association of German Mineral Springs (VDM), and the Association of Non-Alcoholic Beverages collectively estimate that the annual surplus revenue from the tax, coupled with an additional value-added tax, will total €3.97 billion. The federal budget had previously accounted for supplementary revenue of only €450 million per year.
Based on the sugar content, the calculations suggest that multipacks of sodas and colas could increase in price by between €2.50 and €4.50 per case. Jürgen Reichle, CEO of the VDM, told the newspaper that a four-euro increase per case would position Germany’s beverage tax as the highest consumption tax for drinks currently in Europe. He insisted, “Just like with gasoline, people in Germany will pay the price for drinks.”
Holger Eichele, Managing Director of the German Brewers’ Association, criticized the policy shift, stating that after years of significant cost increases, businesses and consumers require effective relief rather than new taxes. Eichele added, “Politics cannot demand affordable food on one hand while imposing a special tax on all kinds of drinks on the other. These plans are excessive and send a totally wrong signal.”
