No tax on sugar and plastic – but the CDU loses in the dispute over cutting electricity taxes

The budget experts from the Union and SPD were unable to agree on counter-financing for a reduction in electricity tax. The tax cut desired by the Union has not been canceled, but should be implemented at a later date - around the beginning of 2028, said Union parliamentary group leader Thorsten Frei (CDU) late on Wednesday evening in Berlin. The plastic tax criticized by the Union will not come, and the introduction of the sugar tax will be postponed to 2028, he said.

“I can only say for our group that reducing the electricity tax is the top priority,” Frei continued. “With this in mind, we will also try to implement the common goal as soon as possible.”

The Union and the SPD were also unable to agree on counter-financing to completely compensate for the cold progression. Relief from electricity tax and cold progression is “desirable,” said SPD parliamentary group leader Matthias Miersch. “But you have to provide solid counter-financing - and that's why we'll have to see in the next few days whether there is this counter-financing that hasn't been available yet.”