German Cabinet Approves Two-Tier Sugar Tax on Sweetened Drinks From July 2027
Germany's CDU/CSU-SPD coalition agreed on a scaled-back two-tier tax on sugar-sweetened beverages, and the cabinet approved a draft bill on Wednesday. From July 1, 2027, drinks with 5 to under 8 grams of sugar per 100 milliliters face 26 cents per liter, and those with 8 grams or more face 32 cents. Small producers are exempt, pending EU approval for larger exemptions. Projected revenues are 690 million euros in 2027 and 925 million in 2028.
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German Government Plans Sugar Tax on Drinks from Mid-2027
The German cabinet has approved a draft bill for a sugar tax on beverages, set to begin on July 1, 2027. The tax will have two tiers: 26 cents per liter for drinks with 5 to less than 8 grams of sugar per 100 milliliters, and 32 cents per liter for those with 8 grams or more. Small and independent producers with annual production up to 70,000 liters are exempt, with an additional exemption for up to one million liters pending EU approval. The tax targets sugary drinks like cola, lemonade, iced tea, and energy drinks, but excludes alcoholic beverages, pure juices, milk-mixed drinks, and artificially sweetened products. Expected revenues are lower than initially planned: 690 million euros for 2027 and 890 million euros for 2031. The revenue will help reduce cuts to the federal health fund subsidy and encourage healthier consumption, as obesity-related healthcare costs are estimated at 2.1 billion euros annually.
Read sourceGerman Government Approves Scaled-Back Sugar Tax on Beverages
The German government has approved a revised sugar tax on beverages, reducing its scope from earlier plans. The cabinet backed a formulation by Finance Minister Lars Klingbeil (SPD) that will now be debated in parliament. The tax, set to begin on July 1, 2027, aims to stabilize healthcare costs. It will have two tiers instead of three: drinks with 5 to under 8 grams of sugar per 100 milliliters will be taxed at 26 cents per liter, and those with 8 grams or more at 32 cents. Small and independent producers with annual output up to 70,000 liters are exempt, with an additional exemption for producers up to one million liters. The state aid still requires approval from the European Commission.
Read sourceGerman Coalition Reaches Agreement on Sugar Tax After Long Dispute
Germany's governing coalition of the CDU/CSU and SPD has resolved a long-running dispute and agreed on a tax on heavily sweetened beverages. The compromise, reported by RND and confirmed by the Finance Ministry, introduces a two-tier tax starting July 1, 2027: 26 cents per liter for drinks with 5 grams of sugar per 100 milliliters, and 32 cents for those with 8 grams or more. Small producers making under one million liters annually are exempt. Finance Minister Lars Klingbeil aims to generate revenue and incentivize healthier products. The government expects the tax to raise about 690 million euros in 2027 and 925 million in 2028. The plan faced resistance, including from Union agriculture ministers, but is set for cabinet approval.
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German Government Agrees on Two-Tier Sugar Tax After Chancellor's Veto
The German coalition government has reached a compromise on a sugar tax after days of negotiations, reducing it from three tiers to two. Beverages with at least 5 grams of sugar per 100 milliliters will be taxed at 26 cents per liter, and those with 8 grams or more at 32 cents per liter. The originally planned third tier of 38 cents for drinks with 10 grams or more was removed. Small independent manufacturers producing up to 70,000 liters annually are fully exempt, and a new exemption covers producers up to one million liters, pending EU Commission approval. The tax is set to take effect July 1, 2027. Due to these changes, expected federal revenue has been revised down to 690 million euros for next year and 925 million euros for 2028, still above the 450 million euros estimated by the Health Finance Commission. The draft is a formulation aid for the CDU/CSU and SPD parliamentary groups, and as a federal tax, Bundesrat approval is not required, though the chamber could delay the process.
Read sourceGerman Coalition Agrees on Sugar Tax and Care Commission
Germany's governing coalition of the CDU/CSU Union and SPD has finalized an agreement on a two-tier sugar tax on sweetened beverages and resolved a dispute over the planned care structure commission, according to a cabinet draft seen by WELT. The sugar tax, to take effect in July next year, would levy 26 cents per liter on drinks with at least five grams of sugar per 100 milliliters and 32 cents per liter from eight grams, with exemptions for producers of under one million liters annually. Projected revenues are 690 million euros in 2027, 925 million in 2028, and around 880 million euros thereafter. The care commission, to be chaired by Georg Cremer and Gabriele Kuhn-Zuber with 13 experts, will examine limiting rising co-payments in care homes and consider private insurance contributions, though a full care coverage guarantee remains off the table.
Read sourceGerman Coalition Reportedly Agrees on Sugar Tax and Care Commission
Germany's governing coalition of the CDU/CSU Union and SPD has reportedly reached a final agreement on introducing a sugar tax and on the mandate for a planned care structure commission, according to RND and dpa citing a cabinet draft. The sugar tax would apply from July next year at 26 cents per liter for drinks with at least five grams of sugar per 100 milliliters, and 32 cents for those with eight grams or more, with exemptions for producers under one million liters annually. Projected revenues are 690 million euros in 2027 and 925 million in 2028. The care commission, chaired by Georg Cremer and Gabriele Kuhn-Zuber, would examine limiting rising co-payments in care homes and, at SPD request, review models for including privately insured people in financing statutory care, though the term 'care cap' is not used. The commission has 13 experts and a broad mandate to stabilize care insurance finances.