Draft tax on sugary drinks adopted in Germany

In the statement made by the German Ministry of Finance, it was stated that the Council of Ministers approved the draft law regarding the imposition of taxes on sugary drinks.

In the statement, "Excessive sugar consumption causes an increased risk of obesity, type 2 diabetes, cardiovascular diseases and tooth decay. Annual health expenditures resulting from the increase in the consumption of sugary drinks are estimated to be approximately 2.1 billion euros." The expression was used.

According to the regulation, the tax in question is planned to come into force as of July 1, 2027. It was noted that the tax revenue to be generated will be transferred to the health fund to keep statutory health insurance premiums stable.

Tax rates were softened by switching to a two-stage structure instead of the three-stage tax system in the original planning.

In the new system, a tax of 26 cents per liter will be collected from beverages containing 5 to 8 grams of sugar per 100 milliliters, and a tax of 32 cents will be collected from beverages containing 8 grams or more of sugar.

Pure fruit and vegetable juices, dairy-free alternative drinks, beverages containing sweeteners, alcoholic beverages that are currently subject to another special consumption tax, and their non-alcoholic alternatives will be exempt from the regulation, which will include cola, soda, sugary fruit drinks, iced teas and energy drinks, as well as sugary syrups.

If the bill becomes law, producers or wholesalers will be the taxpayers of the tax.

While small and independent producers with an annual production volume of up to 70 thousand liters are exempt from tax, an additional exemption is planned for businesses with an annual production volume of up to 1 million liters. However, the approval of the European Commission is required for this state aid to come into force.

The German government expects additional revenue of 690 million euros in 2027, when the tax will come into force, and an annual average of 875 to 890 million euros in the 2028-2031 period.