Chancellery stops draft sugar tax

The debate about higher taxes on sugary drinks is apparently causing a dispute in the black-red coalition. According to information from the “Bild” newspaper, the Chancellery has stopped a bill from Finance Minister Lars Klingbeil (SPD). The reason given is that the plans were “not capable of gaining a majority” and had not been coordinated with the coalition partners.

As part of the negotiations on the austerity package for statutory health insurance, the black-red coalition agreed on a sugar tax from 2027. WELT reported on the draft from the Federal Ministry of Finance on Wednesday. Accordingly, a tax on sugary drinks is to be introduced on July 1, 2027. This will provide the federal government with additional revenue of initially 945 million euros and later more than one billion euros annually. Drinks with a sugar content of five grams per 100 milliliters or more should be taxed. Excluded include pure fruit juices, unsweetened spritzers and non-alcoholic beer and wine products.