Criticism from the Federal Chancellery of Klingbeil's draft sugar tax
The draft law to introduce a sugar tax is met with resistance in the Chancellery and the Union.
Quick Look
- The Federal Chancellery is dissatisfied with Federal Finance Minister Lars Klingbeil's sugar tax bill.
- In government circles, the draft is not considered to have a majority.
- There is also criticism from the Union.
AI-generated summary
Why It Matters
The black-red coalition had agreed on a sugar tax from 2027 as part of negotiations on an austerity package.
The Federal Chancellery is apparently dissatisfied with the draft law to introduce a tax on sugary drinks, which was presented just yesterday by Federal Finance Minister Lars Klingbeil (SPD). The news agency dpa learned this from government circles, Bild had previously reported.
Klingbeil had sent his plans to the ministries for coordination. In government circles it is now said that the draft deviates from the proposal of the Health Finance Commission "and in this form is not capable of gaining a majority in the government".
According to the AFP news agency, the Federal Ministry of Finance says that the federal government has fundamentally decided to introduce the tax on sugary drinks. “Votes are currently underway on how this will be specifically implemented.”
Tax revenue and incentives for healthier products
As part of the negotiations on the austerity package for statutory health insurance, the black-red coalition agreed on a sugar tax from 2027.
In doing so, Klingbeil not only wants to generate income for the federal budget, but also give beverage manufacturers an incentive to reduce the sugar content of their products.
According to the draft, it should apply to all drinks with a sugar content of five grams per 100 milliliters. Contrary to what has been previously considered, there should be no sugar tax on drinks that are sweetened with substitutes. Pure fruit and vegetable juices, non-alcoholic beer and non-alcoholic wine are also exempt.
CDU warns of strain on the economy
The Ministry of Finance expects annual revenues of around one billion euros. Specifically: 945 million euros in the coming year, then 1.155 billion euros in the second year. By 2031, revenue is expected to rise to 1.18 billion.
However, there is resistance, especially in the Union faction. Several federal states also reject the sugar tax. Hesse's Prime Minister Boris Rhein (CDU) described it as a "burden for medium-sized beverage manufacturers". Business representatives are also critical of the tax.
Open Questions
- How will the bill be revised after the criticism?
- When will there be an agreement within the government?
