Following the indefinite halt of the planned sugar tax by the Chancellery, Financial Minister Lars Klingbeil (SPD), the Chief Budget Officer of the SPD parliamentary group, Thorsten Rudolph, has warned of new difficulties in the federal budget. According to Rudolph, the sugar tax was intended to be part of an overall package crucial for submitting a constitutionally compliant budget within the coalition. Rudolph urged all involved parties to fulfill their “responsibility to the country” and stated that the current government should not be the second in a row to fail in budgeting.
The Chancellery temporarily stopped the draft law, which Klingbeil submitted for departmental consultation on Wednesday. The Union party, however, strongly opposes the proposal. Caroline Bosbach (CDU), a reporter responsible for the Union in the Agriculture Committee, told Tagesspiegel that she was “flabbergasted and highly irritated” by the draft. She argued that the proposal went too far, noting that the cost for the €450 million originally discussed suddenly climbed to €1.2 billion. Bosbach suggested the push felt almost like a provocation, adding that food prices should not be inflated further. She welcomed the Chancellery’s intervention to press the brakes, making it clear she would not support the tax in its current form.
The purpose of the sugar tax, according to Klingbeil, is not solely to generate revenue for the federal budget. It is also designed to incentivize beverage manufacturers to reduce the sugar content and make their products healthier. The draft specifies that the tax would apply to all drinks with a sugar content of five grams per 100 milliliters. Notably, the tax would not apply to zero-sugar drinks or to pure fruit and vegetable juices, as well as non-alcoholic beer and wine.
