Berlin. New tax dispute in the black-red coalition: The Union and the SPD are fighting over the planned tax increases on plastic packaging, sugary drinks and cryptocurrencies. Various rounds of talks, including with parliamentary group leaders Thorsten Frei (CDU) and Matthias Miersch (SPD), failed to produce an agreement on Monday, as Handelsblatt learned from coalition circles.
The Union and the SPD are under enormous time pressure to decide on the tax increases they have planned for the coming year. The Budget Committee in the Bundestag is expected to finalize the budget for the coming year at the end of next week. This means that by the weekend both sides must have agreed on which new taxes will come and which will not.
The additional revenue from taxes is firmly planned in the draft by Finance Minister Lars Klingbeil (SPD) in order to close budget holes worth billions. But the Union is particularly opposed to the plastic tax, it was said. And there is a need for discussion about further taxes.
“We are currently rejecting the draft plastic tax,” said CSU regional group leader Alexander Hoffmann. It is now quite clear to both coalition factions: Contrary to what was originally planned, the tax on plastic will no longer be imposed next year.
There will be further rounds of talks over the course of the week to reach an agreement. The parliamentary manager of the Union faction, Catarina dos Santos-Wintz, confirmed on Tuesday: “Negotiations are ongoing.” And added: "I am confident that we will reach an agreement. All sides know what our responsibility is."
Nevertheless, the mood in the discussions themselves is said to be significantly more tense. The plastic tax in particular is causing trouble. It should actually have been approved in the cabinet this Wednesday. But there is still no agreement within the government. The tax is “simply nonsense,” says the Union, pointing out that the bureaucratic effort is particularly annoying.
Finance Minister Klingbeil planned to raise 805 million euros for the federal government next year with the new tax on plastic. From 2028, the tax is expected to bring in a good 1.4 billion euros annually. However, there are very high costs: in the draft law, the Ministry of Finance expects expenditure of 284 million euros for the period up to 2029, including for the Information Technology Center (ITZ) and customs.
Even after the introductory phase, the costs remain high at around 100 million euros annually. In order to collect the new tax, the draft law provides for the creation of 819 new jobs alone.
The European Union has been demanding a budget contribution of 0.80 euros per kilogram for non-recycled plastic packaging waste from its member states since 2021. How the EU countries cover these costs, whether through a national tax or directly from the state budget, is up to them. Many EU states have not yet introduced their own plastic tax, but rather finance the EU contribution from the general budget. The only exception so far is Spain.
The fact that no EU country apart from Spain has introduced a plastic tax is no coincidence, the Union says. A plastic tax offers an immense incentive to relocate the packaging of cheap products abroad. What this means is that companies have to pay taxes in their own country if they package a product in plastic. However, if the company imports the finished packaged product, the packaged goods are imported as a whole and the tax is waived.
Johannes Hauck from the Green Party also points out another problem: If only plastics are taxed, there is a risk that packaging made of composite materials and other materials will be used without ensuring their recyclability.
“To just look at plastics would be short-sighted - the goal must be that as much as possible is recyclable or can be used again,” argues Hauck. Even the Greens' economic association rejects a plastic tax. Better than “a law introduced too quickly” is “effective legislation,” says Hauck. The recyclability of packaging of all materials would have to be taken into account.
Despite these arguments, the plastic tax has not yet been officially canceled. It is true that the Union assumes that the SPD will grudgingly accept a postponement. On the other hand, the SPD says that the tax is “not yet off the table”. However, the Union is so resistant that it will be difficult to introduce it as planned next year.
In addition to the discussion about the plastic tax, there is also a need for discussion about other taxes such as the new sugar tax. The corresponding draft law has already passed the cabinet. But resistance to this remains strong in parts of the Union.
At the initiative of nutrition policy spokeswoman Christina Stumpp, a signature campaign against the sugar tax is circulating in the Union parliamentary group, which around 20 MPs are said to have signed. CSU regional group leader Hoffmann summarized the Union's reservations: "We are demanding a later date for the alcohol tax. We want to prevent the sparkling wine tax from being increased," he said. When it comes to the sugar tax, the “desired date” for its introduction is January 1, 2028.
In the end, as both the Union and the SPD say, the sugar tax will probably come. After there have been several public exchanges over the planned sugar tax in recent weeks and months, both coalition partners are now convinced that they can no longer afford to drop the project. They say you would be embarrassed.
The third new tax, the crypto tax, is also likely to come. It is expected to be decided in the cabinet this Wednesday, although there is still a lot of need for discussion. Therefore, rumors have been doing the rounds for days as to whether the restructuring session of the German Bundestag scheduled for November 11th will have to be postponed. Because it's about filling existing holes and deciding on extra spending in one place or another.
Despite the rumors, experienced budget politicians do not expect the adjustment meeting to be postponed. Nobody wants that here. And given the small amounts involved, this cannot be explained to anyone, several householders explain their assessment.
In addition, recent tax estimates have at least slightly improved the financial situation for the current year. Likewise, in 2026 there will be several billions left over in unpaid spending that could be used to close holes if necessary. Union managing director Dos Santos therefore says: “I have no reason to believe that we will not stick to the budget schedule.”
