Germany's Coalition Settles Sugar Tax Feud, Two-Tier Levy to Start in July 2027
Germany's governing coalition of the conservative CDU/CSU and the center-left SPD has resolved its dispute over a tax on sugary drinks, The Berlin Spectator reported on October 14. The Federal Finance Ministry announced on Tuesday evening that the government had agreed on "a drafting aid for the governing parliamentary groups," which was to be approved by the cabinet on Wednesday. The story was first reported by Redaktionsnetzwerk Deutschland(RND).
Under the draft, the levy is to take effect on July 1, 2027. Beverages containing at least 5 grams of sugar per 100 milliliters would be taxed at 26 cents, rising to 32 cents for drinks with 8 grams per 100 milliliters. RND reported that manufacturers producing less than one million liters of sweetened drinks per year would be exempt. The government expects revenue of about 690 million euros in 2027 and 925 million euros in 2028.
Finance Minister Lars Klingbeil (SPD) has argued that the tax should do more than fill the federal treasury, saying it should encourage beverage makers to lower sugar content and make products healthier. Earlier this month, however, the Chancellery put his plans on hold;government circles said his draft deviated from the proposal of the Finance Commission on Health and lacked a majority within the cabinet in that form.
Resistance continued until the end. A few days ago, the nine agriculture and consumer protection ministers from the CDU/CSU in the federal states wrote to Chancellor Friedrich Merz opposing the tax, criticizing it as state steering that needlessly makes certain foods more expensive. Boris Rhein (CDU), the state premier of Hesse, joined the critics, telling the Kölner Stadt-Anzeiger that rising living costs are among Germany's biggest problems, that the plan sends a "wrong signal" because it is about making citizens pay for gaps in the federal budget, and warning that jobs in the mostly mid-sized beverage industry could be at risk.
Source: GSM · USA (original Chinese edition)
Photo: 货架上的含糖软饮料（资料图）。图片来源：Wikimedia Commons，Marlith 摄，CC BY-SA 3.0 授权
