Black-Red postpones sugar tax - no agreement on electricity tax

According to information from the ARD capital studio, the black-red coalition agreed on compromises on several points of contention in its budget discussions. The sugar tax on heavily sweetened drinks is now not due to come until the beginning of 2028, a few months later than planned. A planned new tax on plastic packaging will not be levied next year for the time being. At the same time, the reduction in electricity tax for everyone, strongly supported by Chancellor Friedrich Merz, is becoming increasingly unlikely.

The SPD and Union factions met in the evening for special meetings on the budget. While the SPD was finished after three quarters of an hour, the discussions at the Union were dragging on. The coalition is under time pressure with its negotiations, as the Bundestag's budget committee is scheduled to meet this Thursday for the so-called adjustment session on the 2027 budget.

Sugar tax in three stages instead of two

According to the draft originally introduced by the cabinet, the sugar tax was supposed to start on July 1, 2027. However, the Union had advocated for a later start on January 1, 2028, also to enable manufacturers of lemonade, for example, to change recipes. From the beginning of 2028, the tax will now be levied in three instead of two stages based on the sugar content.

The Union and the SPD had agreed to introduce the tax as part of the passed law for stable health insurance contributions. It should apply to colas, lemonades, iced teas, energy drinks and fruit juice drinks with added sugar.

5.4 billion wanted for electricity tax reduction

The Union and the SPD have not yet found any financing for the planned electricity tax cut. Theoretically, the political groups could still finance the necessary around 5.4 billion euros at the budget adjustment meeting tomorrow, but the budget is already extremely tight. So far, the householders have not found any room for maneuver. It is therefore unlikely that relief can come at the beginning of the year - as Merz wanted.

In the coalition agreement, the Union and the SPD agreed to reduce electricity taxes for everyone to the European minimum. However, this has so far only been implemented for the manufacturing industry and agriculture and forestry.

No compensation of the cold progression

The Union also wanted to completely offset the cold progression caused by inflation. According to information from the ARD capital studio, the factions were unable to reach an agreement on this. This is said to have dampened the mood, particularly in the Union faction.

An agreement was reached to reverse planned cuts in social policy projects. There will be fewer savings than originally planned in areas such as parental allowance, housing benefit and maintenance advances.

The alcohol tax is to be increased as planned from January, but the sparkling wine tax is not to rise.